{
  "title": "Bank Losses, Monetary Policy and Financial Stability—Evidence on the Interplay from Panel Data",
  "publication": "IMF Working Papers, September 1, 2008",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/31/bank-losses-monetary-policy-and-financial-stability-evidence-on-the-interplay-from-panel-data-22328",
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  "summary": "We 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.",
  "sections": [
    {
      "heading": "Summary findings",
      "content": "- Losses lead to a reduction in credit to companies and households.\n- The reduction in credit due to losses is more pronounced when either initial bank capitalization is thin or when monetary policy is tight.\n- Ample capital is more important in cushioning the effect of loan losses when monetary policy is tight.\n- Capital buffers and accommodating monetary policy act as substitutes in offsetting the adverse effect of losses on loan growth.\n- Most effects are stronger in crisis times, but they operate both in and outside full-blown banking crises.\n- These findings have important implications for the interplay between financial stability and monetary policy."
    },
    {
      "heading": "Data and scope",
      "content": "- Dataset: unique cross-country dataset of more than 600 banks from 32 countries.\n- Publication type: IMF Working Papers.\n- Pages: 30\n- Volume: 2008\n- Issue: 232\n- Series: Working Paper No. 2008/232"
    },
    {
      "heading": "Keywords and subjects",
      "content": "- Subject: Bank credit, Banking, Banking crises, Credit, Loans\n- Keywords: bank capital channel, lending response, loan growth, loan loss, monetary policy indicator, WP"
    },
    {
      "heading": "Publication identifiers",
      "content": "- DOI: https://doi.org/10.5089/9781451870909.001\n- Stock No: WPIEA2008232\n- ISBN: 9781451870909\n- ISSN: 1018-5941\n\nSource: IMF Working Paper \"Bank Losses, Monetary Policy and Financial Stability—Evidence on the Interplay from Panel Data\" by Lea Zicchino and Erlend Nier, September 1, 2008.\n\n---\n\n Content in this bundle\n\n- wp08232\n  - wp08232 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp08232 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/bank-losses-monetary-policy-and-financial-stability-evidence-on-the-interplay-from-panel-data-22328"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/bank-losses-monetary-policy-and-financial-stability-evidence-on-the-interplay-from-panel-data-22328/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/31/bank-losses-monetary-policy-and-financial-stability-evidence-on-the-interplay-from-panel-data-22328/index.json)",
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    "Authors: Lea Zicchino, Erlend Nier",
    "Published: September 1, 2008",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451870909.001",
    "Losses lead to a reduction in credit to companies and households.",
    "The reduction in credit due to losses is more pronounced when either initial bank capitalization is thin or when monetary policy is tight.",
    "Ample capital is more important in cushioning the effect of loan losses when monetary policy is tight.",
    "Capital buffers and accommodating monetary policy act as substitutes in offsetting the adverse effect of losses on loan growth.",
    "Most effects are stronger in crisis times, but they operate both in and outside full-blown banking crises.",
    "These findings have important implications for the interplay between financial stability and monetary policy.",
    "Dataset: unique cross-country dataset of more than 600 banks from 32 countries.",
    "Publication type: IMF Working Papers.",
    "Pages: 30",
    "Volume: 2008",
    "Issue: 232",
    "Series: Working Paper No. 2008/232",
    "Subject: Bank credit, Banking, Banking crises, Credit, Loans",
    "Keywords: bank capital channel, lending response, loan growth, loan loss, monetary policy indicator, WP",
    "DOI: https://doi.org/10.5089/9781451870909.001",
    "Stock No: WPIEA2008232",
    "ISBN: 9781451870909",
    "ISSN: 1018-5941",
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