Title

Global Banking and the Balance Sheet Channel of Monetary Transmission

Authors

Authors

S. Alpanda;U. Aysun

Comments

Authors: contact us about adding a copy of your work at STARS@ucf.edu

Abbreviated Journal Title

Int. J. Cent. Bank.

Keywords

POLICY TRANSMISSION; BUSINESS CYCLES; MARKETS; Business, Finance

Abstract

The literature typically finds that the development of financial markets has decreased the ability of central banks to affect the real economy. This paper shows that this negative relationship does not hold between the balance sheet channel of monetary transmission and bank globalization-one aspect of financial development. The reason is that global banks are more sensitive to their borrowers' leverage. By affecting this leverage, monetary policy has a larger impact on global banks' lending and aggregate economic activity. We use bank-level Call Report data to find this disparity between more and less global banks.

Journal Title

International Journal of Central Banking

Volume

8

Issue/Number

3

Publication Date

1-1-2012

Document Type

Article

Language

English

First Page

141

Last Page

175

WOS Identifier

WOS:000308580300004

ISSN

1815-4654

Share

COinS