Publication:
Reserve requirements, liquidity risk, and bank lending behavior

dc.contributor.coauthorAlper, Koray
dc.contributor.coauthorBinici, Mahir
dc.contributor.coauthorKara, Hakan
dc.contributor.coauthorÖzlü, Pınar
dc.contributor.departmentDepartment of Economics
dc.contributor.kuauthorDemiralp, Selva
dc.contributor.schoolcollegeinstituteCollege of Administrative Sciences and Economics
dc.date.accessioned2024-11-09T22:51:47Z
dc.date.issued2018
dc.description.abstractAlthough reserve requirements (RR) have been used in emerging markets to smooth credit cycles, the transmission mechanism remains blurry. Using bank-level data, we unveil the interaction of RR with bank lending. We identify a new channel that works through a decline in banks' liquid assets and loan supply due to an increase in RR. Quantitative tightening through RR raises the short-term funding needs of the banking system, which is met by collateralized central bank lending, thus depleting banks' unencumbered liquid assets. Our results suggest that such a shift in bank liquidity is associated with a significant change in lending.
dc.description.indexedbyWOS
dc.description.indexedbyScopus
dc.description.issue4
dc.description.openaccessYES
dc.description.publisherscopeInternational
dc.description.sponsoredbyTubitakEuN/A
dc.description.volume50
dc.identifier.doi10.1111/jmcb.12475
dc.identifier.eissn1538-4616
dc.identifier.issn0022-2879
dc.identifier.quartileQ3
dc.identifier.scopus2-s2.0-85046352333
dc.identifier.urihttps://doi.org/10.1111/jmcb.12475
dc.identifier.urihttps://hdl.handle.net/20.500.14288/6903
dc.identifier.wos434136900008
dc.keywordsMonetary transmission mechanism
dc.keywordsLiquidity channel
dc.keywordsReserve requirements
dc.keywordsTurkey
dc.language.isoeng
dc.publisherWiley-Blackwell
dc.relation.ispartofJournal of Money Credit and Banking
dc.subjectBusiness
dc.subjectFinance
dc.subjectEconomics
dc.titleReserve requirements, liquidity risk, and bank lending behavior
dc.typeJournal Article
dspace.entity.typePublication
local.contributor.kuauthorDemiralp, Selva
local.publication.orgunit1College of Administrative Sciences and Economics
local.publication.orgunit2Department of Economics
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relation.isOrgUnitOfPublication.latestForDiscovery7ad2a3bb-d8d9-4cbd-a6a3-3ca4b30b40c3
relation.isParentOrgUnitOfPublication972aa199-81e2-499f-908e-6fa3deca434a
relation.isParentOrgUnitOfPublication.latestForDiscovery972aa199-81e2-499f-908e-6fa3deca434a

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