Template-Type: ReDIF-Paper 1.0
Author-Name: Yiping Huang
Author-X-Name-First: Yiping
Author-X-Name-Last: Huang
Author-Name: Xiang Li
Author-X-Name-First: Xiang
Author-X-Name-Last: Li
Author-Name: Han Qiu
Author-X-Name-First: Han
Author-X-Name-Last: Qiu
Author-Name: Changhua Yu
Author-X-Name-First: Changhua
Author-X-Name-Last: Yu
Title: Big tech credit and monetary policy transmission: micro-level evidence from China
Abstract: This paper studies monetary policy transmission through BigTech and traditional banks. By comparing business loans made by a BigTech bank with those made by traditional banks, it finds that BigTech credit amplifies monetary policy transmission mainly through the extensive margin. Specifically, the BigTech bank is more likely to grant credit to new borrowers compared with conventional banks in response to expansionary monetary policy. The BigTech bank's advantages in information, monitoring, and risk management are the potential mechanisms. In addition, the usage of BigTech credit is associated with a stronger response of firms' sales in response to monetary policy.
Creation-Date: 2023-03
File-URL: https://www.bis.org/publ/work1084.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work1084.htm
File-Format: text/html
Number: 1084
Keywords: financial technology, monetary policy transmission, bank lending
Classification-JEL: G21, E52, G23
Handle: RePEc:bis:biswps:1084