Monetary policy does not ‘persistently impact’ bank lending, paper finds
Working paper examines the impact of interest rate changes on both lending and credit risk
A working paper published by the Central Bank of Cyprus presents evidence against the existence of "persistent direct effects" of monetary policy on bank lending in the eurozone.
In The lack of persistence of interest rate changes on banks' lending and risk taking behaviour, Nektarios A Michail, Demetris Koursaros and Christos S Savva consider both direct and indirect channels.
"Overall, the findings in this paper suggest that interest rates have no persistent impact on bank lending or bank
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