TY - JOUR
T1 - Financial institutions’ business models and the global transmission of monetary policy
AU - Argimon, Isabel
AU - Bonner, Clemens
AU - Correa, Ricardo
AU - Duijm, Patty
AU - Frost, Jon
AU - de Haan, Jakob
AU - de Haan, Leo
AU - Stebunovs, Viktors
PY - 2019/2
Y1 - 2019/2
N2 - 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.
AB - 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.
KW - Bank lending channel
KW - Business models
KW - Global financial institutions
KW - Monetary policy transmission
KW - Portfolio channel
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U2 - 10.1016/j.jimonfin.2018.08.010
DO - 10.1016/j.jimonfin.2018.08.010
M3 - Article
AN - SCOPUS:85054231149
SN - 0261-5606
VL - 90
SP - 99
EP - 117
JO - Journal of International Money and Finance
JF - Journal of International Money and Finance
ER -
