Evidence on the Bank Lending Channel in Europe

  title={Evidence on the Bank Lending Channel in Europe},
  author={Otabek Fazylovb and Philip Molyneuxa}
  • Otabek Fazylovb, Philip Molyneuxa
This paper adds to the confusion on evidence of a bank lending channel in Europe. Following the approach suggested by Kishan and Opiela (2000) we use bank balance sheet to estimate the response of bank lending to changes in monetary policy stance between 1991 and 1999. In particular, we classify banks according to asset size and capital strength to see if these factors have a significant impact on the lending channel. Using a panel data approach we find that across the EMU systems… CONTINUE READING
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