Banking market structure and monetary policy
This volume contains several macroeconomic and microeconomic works on the subjects of monetary policy transmission and the regulation of the banking industry. The reason to consider both issues in the same volume lies in the fact that some channels whereby monetary policy reaches the real sector hinge on the structure of the banking sector (e.g. barriers to entry, degree of competition, financial taxation) and on some informational distortions typically ascribed to the financial sector (borrower lender relationship, and ownership relations). The book also combines empirical and theoretical contributions on issues that are relevant for Chile and other emerging economies. A common feature of the findings reported in these works is that regulatory distortions have an important effect on the efficiency and profitability of the banking industry. Whether we measure the spread from intermediation or the interest rates charged on traditional banking activities, the microeconomic structure has an effect on these variables. The natural question to pursue involves the effect of these regulatory and industry conditions on the transmission of monetary policy. Certainly, the evidence presented here provides interesting venues for future research and policy implications.Banking industry and monetary policy: an overview / Luis A. Ahumada, J. Rodrigo Fuentes -- Financial markets and financial leverage in a two-country world economy / Simon Gilchrist -- The output composition puzzle: a difference in the monetary transmission mechanism in the Euro area and the United States / Ignazio Angeloni, Anil K. Kashyap, Benoit Mojon, Daniele Terlizzese -- Bank lending channel in Chile / Rodrigo Alfaro, Helmut Franken, Carlos García, y Alejandro Jara -- Retail bank rate pass-through: is Chile atypical / Marco A. Espinosa-Vega and Alessandro Rebucci -- Is there lending rate stickiness in the chilean banking industry? / Solange Berstein and J. Rodrigo Fuentes -- Concentration, hold-up, and information revelation in bsnk lending: evidence from chilean firms / Alvaro García, Andrea Repetto, Sergio Rodríguez, and Rodrigo O. Valdés -- Foreign bank entry and business volatility: evidence from U.S. States and other countries / Donald P. Morgan, Philip E. Strahan -- Denying foreign bank entry: implications for bank interest margins / Ross Levine -- Effect of cross-industry ownership on pricing: evidence of common ownership between banks and pension funds in Chile / Luis Antonio Ahumada and Nicola Cetorelli -- Alternative approaches to taxing the finacial sector: wich is best and where does Chile stand? / Patrick Honohan -- Deposit insurance: handle with care / Asli Demirguc-Kunt, Edward J. Kane / Banking concentration: implications for systemic risk and safety-net design / Rodrigo Cifuentes.