Bank lending in Switzerland: Capturing cross-sectional heterogeneity and asymmetry over time

Arbeitspapier

We study the bank lending channel in Switzerland over three decades using unbalanced quarterly bank-individual data spanning 1987 to 2016. In contrast to the usual empirical approach, we take an agnostic stance on which bank characteristic drives the heterogenous lending response to interest rate changes. In addition, our empirical model allows for a changing lending reaction occurring over time in a state-dependent manner. Our results are consistent with the existence of a bank lending channel, which is however muted in specific periods. Such episodes are characterized by increased economic uncertainty, which negatively impacts loan growth.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 20.04

Classification and Topics

• Classification: Wirtschaft ; Bayesian Analysis: General ; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models ; Financial Markets and the Macroeconomy ; Monetary Policy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: Bank lending channel ; economic uncertainty ; Markov switching model ; Bayesian econometrics ; unbalanced panel

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Beutler, Toni ; Gubler, Matthias ; Hauri, Simona ; Kaufmann, Sylvia
• Event: Veröffentlichung
• (who): Swiss National Bank, Study Center Gerzensee
• (where): Gerzensee
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/247255
• Last update: 10.03.2025, 11:43 AM CET