We would like to invite you to participate in Management Engineering (ME) Seminar.

1. When: May 2nd (Thursday), 16:00 ~ 17:30
2. Where: Building 9, 3th #9303
3. Speaker: Prof. Sangyup Choi (Yonsei University)
4. Topic: International Bank Lending Channel of Monetary Policy
5. Research field: Managerial Economics
* Lecture will be delivered in Korean.

[Abstract]
How does domestic monetary policy in center countries spillover to the rest of the world? This paper examines the bank lending channel of monetary policy in the international context using bilateral crossborder banking data. We use exogenous surprises in monetary policy stance in systemically important economies, including the U.S., and the local projection method to estimate the dynamic effect of monetary policy shocks on cross-border bank lending. We find robust evidence that the bank lending channel of monetary policy is still potent in the international context: an exogenous monetary tightening leads to a statistically and economically significant decline in cross-border bank lending. This effect tends to be larger during periods of lower measured global risks or uncertainty (proxied by the VIX) and when lending toward emerging market borrowers. In contrast, no clear-cut evidence emerges on the ability of capital controls and floating exchange rate regimes in reducing the cross-border spillover effect of monetary policy.