Monetary transmission and bank lending: is the single monetary policy homogenous across euro area countries?

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Eleuterio Vallelado
Javier Villar Burke


We postulate that bank lending is affected by ECB policy via new loans and via the stock of existing loans. In this context, this paper documents a wide diversity in borrowers’ features, loan features and price developments across euro area Member States that produces heterogeneous impacts in bank lending. Thus, countries with higher (lower) inflation, higher (lower) stock of loans longer (shorter) maturities, and higher (lower) proportion of adjustable rate loans are affected more (less) when ECB changes its policy rate. The significant differences in these factors across euro area Member States can distort a homogeneous transmission of the single monetary policy and generate asymmetries in bank lending.


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Vallelado, E., & Villar Burke, J. (2019). Monetary transmission and bank lending: is the single monetary policy homogenous across euro area countries?. UCJC Business and Society Review (formerly Known As Universia Business Review), 16(1), 18-37. Recuperado a partir de
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Biografía del autor/a

Eleuterio Vallelado, Universidad de Valladolid

teProfessor of Finance at University of Valladolid, Spain. He obtained his Bachelor’s degree in Economics and Business and his Ph.D at the University of Valladolid (Spain) and MBA from Stern School of Business, New York University (USA). Fulbright Scholar from 1989 to 1991. Vice Chancelor of Strategic Planning from 2006 to 2008. He has published widely in corporate finance, banking and behavioural finance areas. His current research focus on banking strategies, behavioral finance, the relevance of institutional setting on corporate finance, and corporate governance, compensation and models of financial system.


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