05948oam 22011894 450 991096554200332120250426110532.0978661284183597814623023141462302319978145276723914527672389781451870909145187090697812828418331282841831(CKB)3170000000055121(EBL)1608030(SSID)ssj0000943976(PQKBManifestationID)11505880(PQKBTitleCode)TC0000943976(PQKBWorkID)10977707(PQKB)11554645(OCoLC)465444517(IMF)WPIEE2008232(MiAaPQ)EBC1608030(IMF)WPIEA2008232WPIEA2008232(EXLCZ)99317000000005512120020129d2008 uf 0engurcnu||||||||txtccrBank Losses, Monetary Policy and Financial Stability—Evidence on the Interplay from Panel Data /Lea Zicchino, Erlend Nier1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (32 p.)IMF Working PapersIMF working paper ;WP/08/232Description based upon print version of record.9781451915433 1451915438 Includes bibliographical references.Contents; I. Introduction; II. Theory and Hypothesis Development; III. Empirical Method and Data; Tables; 1. Summary Statistics; 2. Average of Provision Ratio; IV. Benchmark Results; 3. Benchmark Equation-Determinants of Loan Growth; V. The Effect of Monetary Policy; 4. The Effect of Losses and Monetary Policy-Interactions; 5. The Effect of Capital and Monetary Policy-Interactions; 6. The Effect of Losses, Capital, and Monetary Policy-Interactions; VI. Financial Conditions: Crisis Versus Noncrisis Countries; 7. Determinants of Loan Growth: Crisis Versus Non-crisis Countries8. Monetary Policy and Banking Crises VII. Robustness Checks; A. Bank-fixed Effects; 9. Monetary Policy and Banking Crises-Interactions; 10. The Effect of Losses and Monetary Policy-Fixed Effects; B. Endogeneity of Bank-specific Characteristics; VIII. Conclusions; 11. The Effect of Losses and Monetary Policy-Robustness to Endogeneity (Fixed Effects Estimate); 12. Description of Variables and Data Sources; 13. Summary Statistics: Monetary Policy and Banking Crisis Countries; 14. Summary Statistics: Monetary Policy and Banking Crisis Episodes; Appendix; ReferencesWe assess the extent to which loan losses affect banks’ provision of credit to companies and households and examine how feedback from losses to a reduction in credit is affected by the monetary policy stance. Using a unique cross-country dataset of more than 600 banks from 32 countries, we find that losses lead to a reduction in credit and that this effect is more pronounced when either initial bank capitalization is thin or when monetary policy is tight. Moreover, in the face of credit losses, ample capital is more important in cushioning the effect of loan losses when monetary policy is tight. In other words, capital buffers and accommodating monetary policy act as substitutes in offsetting the adverse effect of losses on loan growth. While most of these effects are stronger in crisis times, we find them to operate both in and outside full-blown banking crises. These findings have important implications for the interplay between financial stability and monetary policy, which this paper also draws out.IMF Working Papers; Working Paper ;No. 2008/232Bank failuresEconometric modelsMonetary policyEconometric modelsEconomic stabilizationEconometric modelsBank creditimfBanking crisesimfBankingimfBanks and BankingimfBanks and bankingimfBanksimfCreditimfDepository InstitutionsimfEconomic & financial crises & disastersimfFinanceimfFinancial CrisesimfFinancial crisesimfIndustries: Financial ServicesimfLoansimfMicro Finance InstitutionsimfMonetary economicsimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfMoney and Monetary PolicyimfMortgagesimfUnited StatesimfBank failuresEconometric models.Monetary policyEconometric models.Economic stabilizationEconometric models.Bank creditBanking crisesBankingBanks and BankingBanks and bankingBanksCreditDepository InstitutionsEconomic & financial crises & disastersFinanceFinancial CrisesFinancial crisesIndustries: Financial ServicesLoansMicro Finance InstitutionsMonetary economicsMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralMoney and Monetary PolicyMortgages332.1Zicchino Lea1816227Nier Erlend1816072DcWaIMFBOOK9910965542003321Bank Losses, Monetary Policy and Financial Stability—Evidence on the Interplay from Panel Data4372022UNINA