Template-Type: ReDIF-Paper 1.0
Author-Name: Ryan Niladri Banerjee
Author-X-Name-First: Ryan Niladri
Author-X-Name-Last: Banerjee
Author-Name: José María Serena Garralda
Author-X-Name-First: José María 
Author-X-Name-Last: Serena Garralda
Title: Dampening the financial accelerator? Direct lenders and monetary policy
Abstract: Direct lenders, non-bank credit intermediaries with low leverage, have become increasingly important players in corporate loan markets. In this paper we investigate the role they play in the monetary policy transmission mechanism, using syndicated loan data covering the 2000-2018 period. We show that direct lenders are more likely to join loan syndicates whenever monetary policy announcements trigger a contraction in borrowers' net worth irrespective of the directional change in interest rates. Thus, our findings suggest that direct lenders dampen the financial accelerator channel of monetary policy.
Length: 44 pages
Creation-Date: 2021-11
File-URL: https://www.bis.org/publ/work979.pdf
File-Format: Application/pdf
File-Function: Full PDF document
File-URL: https://www.bis.org/publ/work979.htm
File-Format: text/html
Number: 979
Keywords: direct lending, monetary policy, financial accelerator, credit channel
Classification-JEL: G21, G32, F32, F34
Handle: RePEc:bis:biswps:979