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Monetary Transmission and Bank Lending in Germany



Kakes, J., Sturm, J., Maier, P. Monetary Transmission and Bank Lending in Germany. Credit and Capital Markets – Kredit und Kapital, 34(4), 505-525.
Kakes, Jan; Sturm, Jan-Egbert and Maier, Philipp "Monetary Transmission and Bank Lending in Germany" Credit and Capital Markets – Kredit und Kapital 34.4, 2001, 505-525.
Kakes, Jan/Sturm, Jan-Egbert/Maier, Philipp (2001): Monetary Transmission and Bank Lending in Germany, in: Credit and Capital Markets – Kredit und Kapital, vol. 34, iss. 4, 505-525, [online]


Monetary Transmission and Bank Lending in Germany

Kakes, Jan | Sturm, Jan-Egbert | Maier, Philipp

Credit and Capital Markets – Kredit und Kapital, Vol. 34 (2001), Iss. 4 : pp. 505–525

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Author Details

Jan Kakes, Amsterdam

Jan-Egbert Sturm, Munich

Philipp Maier, Groningen


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Monetary Transmission and Bank Lending in Germany

This paper analyses the role of bank lending in the monetary transmission process in Germany. We follow a sectoral approach by distinguishing corporate lending and household lending. We find that banks respond to a monetary contraction by adjusting their securities holdings, rather than reducing their loans portfolio. Most lending categories even show an increase following a monetary tightening. The main implication of our results is that a bank lending channel is not an important transmission mechanism. On the contrary, by insulating their loans portfolio from monetary shocks, banks are more likely to weaken than to strengthen the impact of monetary policy. (JEL E44, E51, E52)