SOAS Research Online

A Free Database of the Latest Research by SOAS Academics and PhD Students

[skip to content]

Beirne, John, Renzhi, Nuobu and Volz, Ulrich (2023) 'Non-Bank Finance and Monetary Policy Transmission in Asia.' Emerging Markets Finance and Trade, 59 (6). pp. 1976-1991.

[img]
Preview
Text - Published Version
Available under License Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 (CC BY-NC-ND 4.0).

Download (5MB) | Preview

Abstract

Focusing on Asian economies over the period 2006 to 2019, we find that while non-bank finance appears to complement rather than substitute credit provision by the traditional banking sector, weaker regulatory quality is an important driving factor. Moreover, while we find that central bank policy rates countercyclically affect credit provision by non-banks, impulse responses to monetary policy shocks with and without non-bank finance indicate that the effectiveness of monetary policy as a transmission channel to GDP growth, inflation, house prices, and traditional bank credit is weakened in the presence of non-bank finance. Our paper has implications for monetary policy implementation, potentially incorporating non-banks into central bank operations and liquidity provision, as well as for financial supervisors on mitigating regulatory arbitrage.

Item Type: Journal Article
Keywords: Non-bank finance; fintech; monetary policy; Asia
SOAS Departments & Centres: Regional Centres and Institutes > Centre of South East Asian Studies
Regional Centres and Institutes > SOAS China Institute
Departments and Subunits > Department of Economics
ISSN: 1540496X
DOI (Digital Object Identifier): https://doi.org/10.1080/1540496X.2022.2156279
Date Deposited: 11 Jan 2023 17:12
URI: https://eprints.soas.ac.uk/id/eprint/38599

Altmetric Data

Statistics

Download activity - last 12 monthsShow export options
Downloads since deposit
6 month trend
47Downloads
6 month trend
88Hits
Accesses by country - last 12 monthsShow export options
Accesses by referrer - last 12 monthsShow export options

Repository staff only

Edit Item Edit Item