Technological innovation and the bank lending channel of monetary policy transmission / Iftekhar Hasan, Xiang Li, Tuomas Takalo ; editor: Halle Institute for Economic Research (IWH) - Member of the Leibniz Association

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1871032059

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urn:nbn:de:gbv:3:2-1004450

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Halle (Saale), Germany : Halle Institute for Economic Research (IWH) - Member of the Leibniz Association, [2023?]

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1 Online-Ressource (III, 50 Seiten, A5, 1,18 MB) : Diagramme

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This version: 23.11.2023

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eng

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Literaturverzeichnis: Seite 45-50

Inhaltliche Zusammenfassung

This paper studies whether and how banks’ technological innovations affect the bank lending channel of monetary policy transmission. We first provide a theoretical model in which banks' technological innovation relaxes firms’ earning-based borrowing constraints and thereby enlarges the response of banks’ lending to monetary policy changes. To test the empirical implications, we construct a patent-based measurement of bank-level technological innovation, which can specify the nature of technology and tell whether it is related to the bank’s lending business. We find that lending-related innovations significantly strengthen the transmission of the bank lending channel.

Schriftenreihe

IWH-Diskussionspapiere ; 2021, no. 14 (December 2021) [rev.] ppn:837399270

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