02016cas a2200277 a 4500 AALejournalIMF015982 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513518770 1018-5941 BD-DhAAL BD-DhAAL Albrizio, Silvia. International Bank Lending Channel of Monetary Policy / Silvia Albrizio, Sangyup Choi, Davide Furceri, Chansik Yoon. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (61 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students How does domestic monetary policy in systemic countries spillover to the rest of the world? This paper examines the transmission channel of domestic monetary policy in the cross-border context. We use exogenous shocks to monetary policy in systemically important economies, including the U.S., and local projections to estimate the dynamic effect of monetary policy shocks on bilateral cross-border bank lending. We find robust evidence that an increase in funding costs following an exogenous monetary tightening leads to a statistically and economically significant decline in cross-border bank lending. The effect is weakened during periods of high uncertainty. In contrast, the effect is found to not vary according to the degree of borrower country riskiness, further weakening support for the international portfolio rebalancing channel. Mode of access: Internet Choi, Sangyup. Furceri, Davide. Yoon, Chansik. IMF Working Papers; Working Paper ; No. 2019/234 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/234/001.2019.issue-234-en.xml IMF e-Library