Work

Banks’ regulatory buffers, liquidity networks and monetary policy transmission

Year: 2008

Type: article

Abstract: Based on a quarterly regulatory dataset for German banks from 1999 to 2004, this article analyses the effects of banks’ regulatory capital on the transmission of monetary policy in a system of liquidity networks. The dynamic panel regression results provide evidence in favour of the bank capital channel theory. Banks holding less regulatory capital and less interbank liquidity react more restrictively to a monetary tightening than their peers.

Source: Applied Economics

DOI: 10.1080/00036840802360245

Authors: Christian Merkl, Stéphanie Stolz

Institutions: Kiel Institute for the World Economy, Christian-Albrechts-Universität zu Kiel, International Monetary Fund, Deutsche Bundesbank

Language: English

Topic: Banking stability, regulation, efficiency

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funders: Deutsche Bundesbank, Institut für Weltwirtschaft

OpenAlex ID: W2007161085

FWCI: 2.913

Cites: 42

Cited by: 47

Related to: 10