TY - JOUR
T1 - Monetary policy and the banking sector in Chile
AU - Fernandez, Viviana
N1 - Funding Information:
Viviana Fernandez ([email protected]) is an assistant professor at the Center for Applied Economics (CEA), Department of Industrial Engineering, University of Chile, Santiago. Financial support for this research came from FONDECYT Grant No. 1030887, and an institutional grant of the Hewlett Foundation to CEA is greatly acknowledged.
PY - 2005
Y1 - 2005
N2 - This paper considers the existence of a bank lending channel in Chile. Toward that, we collect a data sample of nineteen banks that operated in Chile over January 1999-December 2002. In that period, banks primarily offered loans to firms in the manufacturing and the financial-services sectors (representing 13 and 26 percent of total loans, respectively), and to households through consumption and mortgage loans (at 9 and 10 percent of total loans, respectively). Our estimation results support the existence of a bank lending channel. We find that banks respond asymmetrically to monetary shocks depending upon their own characteristics, and that monetary shocks alter loan portfolio decisions in the aggregate.
AB - This paper considers the existence of a bank lending channel in Chile. Toward that, we collect a data sample of nineteen banks that operated in Chile over January 1999-December 2002. In that period, banks primarily offered loans to firms in the manufacturing and the financial-services sectors (representing 13 and 26 percent of total loans, respectively), and to households through consumption and mortgage loans (at 9 and 10 percent of total loans, respectively). Our estimation results support the existence of a bank lending channel. We find that banks respond asymmetrically to monetary shocks depending upon their own characteristics, and that monetary shocks alter loan portfolio decisions in the aggregate.
KW - Bank lending channel
KW - Dynamic panel
UR - http://www.scopus.com/inward/record.url?scp=23844523451&partnerID=8YFLogxK
U2 - 10.1080/1540496x.2005.11052610
DO - 10.1080/1540496x.2005.11052610
M3 - Article
AN - SCOPUS:23844523451
SN - 1540-496X
VL - 41
SP - 5
EP - 36
JO - Emerging Markets Finance and Trade
JF - Emerging Markets Finance and Trade
IS - 3
ER -