Financial stability and monetary policy -The case of Brazil

• Autor(a) principal: Tabak,Benjamin M.
• Data de Publicação: 2013
• Outros Autores: Laiz,Marcela T., Cajueiro,Daniel O.
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Revista Brasileira de Economia (Online)
• Texto Completo: http://old.scielo.br/scielo.php?script=sci_arttext&pid=S0034-71402013000400003
• topic: Monetary policy; Loan growth; Ownership control

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.