Business Commons^™

Streeter - 2018 - Response Of Us Banks - Banking And Finance Review - Pv2.Pdf, Denise Streeter

School of Business Faculty Publications

This paper presents a study of the effectiveness of monetary policy on financialintermediation. Specifically, I aim to determine how commercial banks responded, viacommercial lending, to the trillions of dollars of policy innovations to stimulate the creditmarkets during the 2008 global financial crisis. To that end, I compare the change incommercial lending by United States-based commercial banks during the stimulus period ofOctober 1, 2007 through September 30, 2011 to that activity in the earlier non-stimulus periodof October 1, 2002 through September 30, 2006. After comparing 1,977 commercial loans inthe stimulus period and 1,844 loans in the non-stimulus period, I find that …