NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

What Do a Million Banks Have to Say About the Transmission of Monetary Policy?

Anil K Kashyap, Jeremy C. Stein

NBER Working Paper No. 6056
Issued in June 1997
NBER Program(s):   CF   EFG   ME

In an effort to shed new light on the monetary transmission mechanism, we create a panel data set that includes quarterly observations of every insured commercial bank in the United States over the period 1976-1993. Our key cross-sectional finding is that the impact of monetary policy on lending behavior is significantly more pronounced for banks with less liquid balance sheets -- i.e., banks with lower ratios of cash and securities to assets. Moreover, this result is entirely attributable to the smaller banks in our sample, those in the bottom 95% of the size distribution. Among other things, our findings provide strong support for the existence of a lending channel

download in pdf format
   (584 K)

email paper

An NBER digest for this paper is available.

Published: Kashyap, Anil K. and Jeremy C. Stein. "What Do A Million Observations On Banks Say About The Transmission Of Monetary Policy?," American Economic Review, 2000, v90(3,Jun), 407-428.

This paper is available as PDF (584 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us