Nije dostupno na hrvatskom jeziku.
Anisa Tiza Mimun
- 12 November 2025
- WORKING PAPER SERIES - No. 3151Details
- Abstract
- Is there an undesired side-effect of banking regulation on the non-bank sector? How effective is the non-bank transmission channel of monetary policy in the presence of macroprudential policy? Using a state-dependent local projection approach and a rich dataset capturing macroprudential tightening across euro area countries, we present strong cross-country heterogeneity. In financially conservative markets (Germany, France, the Netherlands), tight monetary policy combined with stricter macroprudential measures significantly contracts investment fund assets. Conversely, financial hubs (Luxembourg, Ireland, Italy) experience counterintuitive expansions under the same policy mix. We introduce a simple balance-sheet framework that shows how interacting funding-cost and collateral-constraint channels generate these opposing responses. Further disaggregation shows that equity funds are more vulnerable to joint tightening in conservative systems, while bond funds partly offset contractionary forces in hubs through higher yields.
- JEL Code
- E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies
G21 : Financial Economics→Financial Institutions and Services→Banks, Depository Institutions, Micro Finance Institutions, Mortgages
G28 : Financial Economics→Financial Institutions and Services→Government Policy and Regulation
G51 : Financial Economics - Network
- Challenges for Monetary Policy Transmission in a Changing World Network (ChaMP)
- 17 September 2025
- WORKING PAPER SERIES - No. 3114Details
- Abstract
- This paper investigates the effects of monetary policy on banks and non-bank financial institutions (NBFIs), with particular attention to the role of financial stress. We use high-frequency identified monetary policy shocks and state-dependent local projections to capture non-linear responses across financial sectors. Drawing on aggregated balance sheet data, including total assets, debt securities, and loans, we find that monetary tightening leads to broad-based contractions in total assets and debt holdings, with particularly pronounced effects for banks and investment funds. Loan responses are more heterogeneous, but money market funds and pension funds exhibit notable declines in loan exposures, especially under high-stress conditions. Importantly, we find that financial stress significantly amplifies the contractionary effects of monetary policy across all sectors and asset classes. Our results highlight the differentiated roles and vulnerabilities of financial intermediaries in the transmission of monetary policy and underline the importance of financial conditions in determining its overall effectiveness.
- JEL Code
- E52 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Monetary Policy
G23 : Financial Economics→Financial Institutions and Services→Non-bank Financial Institutions, Financial Instruments, Institutional Investors - Network
- Challenges for Monetary Policy Transmission in a Changing World Network (ChaMP)