Financial institutions’ business models and the global transmission of monetary policy

Isabel Argimon, Clemens Bonner, Ricardo Correa, Patty Duijm, Jon Frost, Jakob de Haan, Leo de Haan, Viktors Stebunovs

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

Global financial institutions play an important role in channeling funds across countries and, therefore, transmitting monetary policy from one country to another. In this paper, we study whether such international transmission depends on financial institutions’ business models. In particular, we use Dutch, Spanish, and U.S. confidential supervisory data to test whether the transmission operates differently through banks, insurance companies, and pension funds. We find marked heterogeneity in the transmission of monetary policy across the three types of institutions, across the three banking systems, and across banks within each banking system. While insurance companies and pension funds do not transmit home-country monetary policy internationally, banks do, with the direction and strength of the transmission determined by their business models and balance sheet characteristics.

Original languageEnglish
Pages (from-to)99-117
Number of pages19
JournalJournal of International Money and Finance
Volume90
Early online date6 Sep 2018
DOIs
Publication statusPublished - Feb 2019

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Business model
Financial institutions
Monetary policy
Insurance companies
Pension funds
Banking system
Balance sheet
Country funds
International transmission
Home country

Keywords

  • Bank lending channel
  • Business models
  • Global financial institutions
  • Monetary policy transmission
  • Portfolio channel

Cite this

Argimon, Isabel ; Bonner, Clemens ; Correa, Ricardo ; Duijm, Patty ; Frost, Jon ; de Haan, Jakob ; de Haan, Leo ; Stebunovs, Viktors. / Financial institutions’ business models and the global transmission of monetary policy. In: Journal of International Money and Finance. 2019 ; Vol. 90. pp. 99-117.
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Argimon, I, Bonner, C, Correa, R, Duijm, P, Frost, J, de Haan, J, de Haan, L & Stebunovs, V 2019, 'Financial institutions’ business models and the global transmission of monetary policy' Journal of International Money and Finance, vol. 90, pp. 99-117. https://doi.org/10.1016/j.jimonfin.2018.08.010

Financial institutions’ business models and the global transmission of monetary policy. / Argimon, Isabel; Bonner, Clemens; Correa, Ricardo; Duijm, Patty; Frost, Jon; de Haan, Jakob; de Haan, Leo; Stebunovs, Viktors.

In: Journal of International Money and Finance, Vol. 90, 02.2019, p. 99-117.

Research output: Contribution to JournalArticleAcademicpeer-review

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