Monetary Policy and Shadow-Bank Lending: This is not your grandparent’s bank lending channel

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Live Poster Session: Zoom Link
Thursday, July 30th 1:15-2:30pm EDT

Alexander Giummo
Alexander Giummo

Alexander Giummo is a rising sophomore (’23) from Burlington, Vermont. Coming from the Kent School in Connecticut, he plans to major in Economics and Psychology, and minor in Data Analysis. At Wesleyan, he plays on the hockey team and spent his freshman year living in the Butterfield Dorms, where he will return to for his sophomore year. In his free time, he likes to hang out with friends, go skiing, and play wiffleball. After college, he aspires to work in finance.

Abstract: In this paper, we use the relative moments in depository and non-depository single-family mortgage loans to provide evidence on the existence of a loan-flow-supply channel of monetary policy transmission. We find evidence that can be described as a slowdown in the pace of mortgage loan securitization relative to bank held mortgages during FOMC tightening cycles. This finding is inconsistent with bank capital and money market funding effects but IS consistent with a securitization pipeline effect. This suggests that contractionary policy can indeed reduce the supply of securitized lending.

Poster-Alexander-Giummo

Live Poster Session: Zoom Link
Thursday, July 30th 1:15-2:30pm EDT

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