Do highly liquid banks insulate their lending behavior?

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dc.contributor.author Kapoor, Supriya
dc.date.accessioned 2018-05-21T12:51:06Z
dc.date.available 2018-05-21T12:51:06Z
dc.date.issued 2017-09-09
dc.identifier.uri http://hdl.handle.net/10197/9400
dc.description.abstract The role of banks in the transmission of monetary policy has been of significance lately. We aim to analyse the bank lending behaviour during changes in monetary policy. We test for loan supply shifts by segregating banks based on their liquidity along with size and capital ratio. This paper employs uninsured, non-reservable liabilities such as time deposits and investigates whether banks are able to insulate themselves during a monetary policy change. We find that the loan supply shock can be neutralized post monetary policy changes. Furthermore, the less liquid and small banks are unable to carry out such operations and are more affected by monetary shocks. This has important implication in the working of commercial banks and effects of monetary policy. en
dc.language.iso en en
dc.publisher University College Dublin. Geary Institute en
dc.relation.ispartofseries UCD Geary Institute Discussion Paper Series en
dc.relation.ispartofseries 2017/09 en
dc.relation.requires Economists Online Collection
dc.subject Bank lending channel en
dc.subject Monetary policy en
dc.subject Liquidity en
dc.subject Time deposits en
dc.subject.classification E52 en
dc.subject.classification G21 en
dc.subject.classification E50 en
dc.title Do highly liquid banks insulate their lending behavior? en
dc.type Working Paper en
dc.internal.webversions http://www.ucd.ie/geary/static/publications/workingpapers/gearywp201709.pdf
dc.status Not peer reviewed en
dc.neeo.contributor Kapoor|Supriya|aut|
dc.date.updated 2017-10-05


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