The effect of the quantitative easing on bank lending in Japan:
A VAR analysis
2021 Volume 18 Issue 2 Pages 1-20
Details
2021 Volume 18 Issue 2 Pages 1-20
This paper investigates the effect of the quantitative easing on bank lending, taking business type of banks (city banks, regional banks, shinkin banks) into consideration. To do this, we use the Vector autoregression(VAR) model with data set after 2001. As a result, we find that the response of bank lending tends to increase with positive shocks to monetary base. Furthermore, we find that the response of lending of regional banks is relatively small.
