Does monetary policy affect bank lending to households and firms differently?

초록

Are the bank lending channel effects of monetary policy different on bank loans to households and firms? This question has an implication for the financial stability consideration of monetary policy but is not answered in previous literature. We examine Korean banks' monthly financial statements from 2010 to 2019 based on the identification strategy that compares banks with different balance sheet liquidities. We find that the bank lending channel is significant in business loans but not in household loans. The difference in policy effects is related to the different maturity structures. Monetary policy changes take effect in bank loans primarily through new/refinanced loans. The share of these new loans is larger in business loans than in household loans because loan maturities are shorter for firms. We provide supporting evidence by examining the data on loan maturity and new mortgage loans.

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