Internal Capital Markets in Financial Conglomerates : Evidence from Small Bank Responses to Monetary Policy

  title={Internal Capital Markets in Financial Conglomerates : Evidence from Small Bank Responses to Monetary Policy},
  author={M. E. S. Campello},
This paper examines the functioning of internal capital markets within bank holding companies (BHCs) and its implications for the impact of monetary policy on banks. I find that as monetary policy is tightened, if a small bank operates jointly with a large bank (with easy access to noninsured deposits) within a BHC then the small bank’s loan growth becomes less sensitive to its own internally generated funds. In contrast, if a small bank is unaffiliated with a large BHC, its loan growth becomes… CONTINUE READING
Highly Influential
This paper has highly influenced 14 other papers. REVIEW HIGHLY INFLUENTIAL CITATIONS
Highly Cited
This paper has 75 citations. REVIEW CITATIONS
59 Extracted Citations
33 Extracted References
Similar Papers

Citing Papers

Publications influenced by this paper.

75 Citations

Citations per Year
Semantic Scholar estimates that this publication has 75 citations based on the available data.

See our FAQ for additional information.

Referenced Papers

Publications referenced by this paper.
Showing 1-10 of 33 references

The dark side of internal capital markets II: Evidence from diversified conglomerates,

  • Scharfstein, S David
  • NBER Working Paper
  • 1998
Highly Influential
8 Excerpts

Bank size, bank capital, and the bank lending channel,

  • Kishan, P Ruby, Timothy P. Opiela
  • Journal of Money Credit and Banking
  • 2000

Capital market frictions and deposit constraints at banks,

  • Jayaratne, Jith, Donald P. Morgan
  • Journal of Money Credit and Banking
  • 2000

The cost of diversity: The diversification discount and inefficient investment

  • Rajan, Raghuram, Henri Servaes, Luigi Zingales
  • Journal of Finance
  • 2000

Why do firms undertake diversifying mergers? An investigation of investment policies of merging firms,

  • Chevalier, Judith
  • Working Paper,
  • 1999

Similar Papers

Loading similar papers…