TY  - JOUR
AU  - Kashyap,Anil K
AU  - Stein,Jeremy C.
TI  - What Do a Million Banks Have to Say About the Transmission of Monetary Policy?
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6056
PY  - 1997
Y2  - June 1997
UR  - http://www.nber.org/papers/w6056
L1  - http://www.nber.org/papers/w6056.pdf
N1  - Author contact info:
Anil Kashyap
Booth School of Business
University of Chicago
5807 S. Woodlawn Avenue
Chicago, IL 60637
Tel: 773/702-7260
Fax: 773/702-0458
E-Mail: anil.kashyap@chicagobooth.edu

Jeremy C. Stein
Department of Economics
Harvard University
Littauer 209
Cambridge, MA  02138
Tel: 617/496-6455
Fax: 617/496-7352
E-Mail: jeremy_stein@harvard.edu
M2  - featured in NBER digest on 1997-12-01
AB  - 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
ER  -