Trade Credit, Bank Lending and Monetary Policy Transmission
Author : Simona Mateut
Publisher :
Page : 29 pages
File Size : 44,11 MB
Release : 2002
Category : Economics
ISBN :
Author : Simona Mateut
Publisher :
Page : 29 pages
File Size : 44,11 MB
Release : 2002
Category : Economics
ISBN :
Author : Simona Mateut
Publisher :
Page : 0 pages
File Size : 27,93 MB
Release : 2005
Category :
ISBN :
Recently, an increasing number of papers have investigated the role of trade credit as an external source of finance when analyzing the monetary transmission mechanism. These works support the balance sheet-channel view and at the same time explain the difficulties encountered when looking for evidence in favor of the bank-lending channel. This paper presents a survey of the emerging literature on the role of trade credit in the transmission of monetary policy, trying to link it with the well-established credit-channel literature.
Author : Ignazio Angeloni
Publisher : Cambridge University Press
Page : 522 pages
File Size : 19,74 MB
Release : 2003-12-04
Category : Business & Economics
ISBN : 9780521828642
A systematic analysis of the impact of European Central Bank monetary policy on Eurozone national economies, first published in 2003.
Author : Mr.Yungsan Kim
Publisher : International Monetary Fund
Page : 36 pages
File Size : 42,86 MB
Release : 2003-06-01
Category : Business & Economics
ISBN : 1451855001
Many studies examine why firms are financed by their suppliers, but few empirical studies look at the macroeconomic implications of such financial arrangements. Using disaggregated panel data, we examine how firms extend and use trade credit. We find that, controlling for the transactions or asset management motive, both accounts payable and receivable increase with tighter policy, implying that trade credit helps firms absorb the effect of a credit contraction. A comparison of S&P 500 firms with smaller firms, however, provides no evidence that when policy is tightened, large firms play the role of credit suppliers more actively than small firms.
Author : Mr.Guido De Blasio
Publisher : International Monetary Fund
Page : 29 pages
File Size : 46,97 MB
Release : 2003-08-01
Category : Business & Economics
ISBN : 1451858124
The paper examines micro data on Italian manufacturing firms' inventory behavior to test the Meltzer (1960) hypothesis according to which firms substitute trade credit for bank credit during periods of monetary tightening. It finds that their inventory investment is constrained by the availability of trade credit. As for the magnitude of the substitution effect, however, this study finds that it is not sizable. This is in line with the micro theories of trade credit and the evidence on actual firm practices, according to which credit terms display modest variations over time.
Author : Mr.Fabian Valencia
Publisher : International Monetary Fund
Page : 26 pages
File Size : 12,84 MB
Release : 2013-12-02
Category : Business & Economics
ISBN : 1475513933
Recent studies show that uncertainty shocks have quantitatively important effects on the real economy. This paper examines one particular channel at work: the supply of credit. It presents a model in which a bank, even if managed by risk-neutral shareholders and subject to limited liability, can exhibit self-insurance, and thus loan supply contracts when uncertainty increases. This prediction is tested with the universe of U.S. commercial banks over the period 1984-2010. Identification of credit supply is achieved by looking at the differential response of banks according to their level of capitalization. Consistent with the theoretical predictions, increases in uncertainty reduce the supply of credit, more so for banks with lower levels of capitalization. These results are weaker for large banks, and are robust to controlling for the lending and capital channels of monetary policy, to different measures of uncertainty, and to breaking the dataset in subsamples. Quantitatively, uncertainty shocks are almost as important as monetary policy ones with regards to the effects on the supply of credit.
Author : Michael S. Gibson
Publisher :
Page : 56 pages
File Size : 23,98 MB
Release : 1997
Category : Bank loans
ISBN :
Author : Jan Kakes
Publisher : Edward Elgar Publishing
Page : 176 pages
File Size : 50,52 MB
Release : 2000-01-01
Category : Business & Economics
ISBN : 9781781959336
This work focuses on different aspects of the monetary transmission process, looking at both large and small economies in the EMU. The results offer useful evaluation tools with regard to monetary policy transmission in a European perspective.
Author : Nicola Cetorelli
Publisher : DIANE Publishing
Page : 41 pages
File Size : 41,39 MB
Release : 2010-11
Category : Business & Economics
ISBN : 1437933874
Global banks played a significant role in transmitting the 2007-09 financial crisis to emerging-market (EM) economies. The authors examine adverse liquidity shocks on main developed-country banking systems and their relationships to EM across Europe, Asia, and Latin Amer., isolating loan supply from loan demand effects. Loan supply in EM across Europe, Asia, and Latin Amer. was affected significantly through three separate channels: (1) a contraction in direct, cross-border lending by foreign banks; (2) a contraction in local lending by foreign banks¿ affiliates in EM; and (3) a contraction in loan supply by domestic banks, resulting from the funding shock to their balance sheets induced by the decline in interbank, cross-border lending. Charts and tables.
Author : Inessa Love
Publisher : World Bank Publications
Page : 34 pages
File Size : 46,95 MB
Release : 2005
Category : Bank loans
ISBN :
"The authors study the effect of financial crises on trade credit in a sample of 890 firms in six emerging economies. They find that although provision of trade credit increases right after the crisis, it consequently collapses in the following months and years. The authors observe that firms with weaker financial position (for example, high pre-crisis level of short-term debt and low cash stocks and cash flows) are more likely to reduce trade credit provided to their customers. This suggests that the decline in aggregate credit provision is driven by the reduction in the supply of trade credit, which follows the bank credit crunch. The results are consistent with the "redistribution view" of trade credit provision, in which bank credit is redistributed by way of trade credit by the firms with stronger financial position to the firms with weaker financial stand "--World Bank web site.