ECB policy changes foreign-denominated lending – Bank of Spain paper

Tighter ECB policy usually leads to increased lending abroad, researcher finds

spain-italy-euro

Changes in the European Central Bank’s monetary policy affect how Spanish banks make foreign currency loans, a working paper published by the Bank of Spain says.

In The relevance of currency denomination for the cross-border effects of monetary policy, Isabel Argimón looks at how ECB policy affects lending by internationally active banks.

The author uses data from Spanish individual banks to see whether a monetary policy decision affects how banks adjust their lending to foreign clients. She

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