Differential deposit guarantees and the effect of monetary policy on bank lending.: An article from: Economic Inquiry

This digital document is an article from Economic Inquiry, published by Western Economic Association International on October 1, 2008. The length of the article is 9559 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available immediately after purchase. You can view it with any web browser.

From the author: This paper utilizes differences in de jure deposit insurance coverage across banks and changes in coverage over time to identify a bank-lending channel in Poland. Banks with partial guarantees have a stronger loan response to monetary policy than banks with full guarantees. Furthermore, the weak response of the fully guaranteed banks is attributed to their ability to raise low-reserve, uninsured time deposits relative to the partially covered banks. When differential coverage is eliminated, there is no disparity in the loan response between the two groups. This lending channel has implications for credit control and financial system development in emerging markets. (JEL E52, G21, G28)

Citation Details
Title: Differential deposit guarantees and the effect of monetary policy on bank lending.
Author: Timothy P. Opiela
Publication:Economic Inquiry (Magazine/Journal)
Date: October 1, 2008
Publisher: Western Economic Association International
Volume: 46 Issue: 4 Page: 610(14)

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