Financial Stability and Monetary Policy - The case of Brazil

• Autor(a) principal: Tabak, Benjamin Miranda
• Data de Publicação: 2013
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Brasileira de Economia (Online)
• Texto Completo: https://periodicos.fgv.br/rbe/article/view/11849
• topic: bank lending channel; monetary policy

This paper seeks to examine the effects of monetary policy over banks’ loans growth and whether there is a bank lending channel operating in Brazil. Therefore, we employ a detailed high frequency panel data in which we include bank characteristics and ownership control. We contribute to the literature on bank lending channel by showing that during periods of  loosening/tightening monetary policy, banks increase/decrease their loans. Additionally, our results illustrate that large, well-capitalized and liquid banks react differentially to the effects of monetary policy shocks. Finally, we show that the impact of monetary policy differs across state-owned, foreign and private domestic banks. These  results are important for developing and conducting monetary policy.