cover_DP_2022-18.jpg

BigTech Credit and Monetary Policy Transmission: Micro-level Evidence from China

This paper studies monetary policy transmission through BigTech and traditional banks. By comparing business loans made by a BigTech bank with those made by traditional banks, it finds that BigTech credit amplifies monetary policy transmission mainly through the extensive margin. Specifically, the BigTech bank is more likely to grant credit to new borrowers compared with conventional banks in response to expansionary monetary policy. The BigTech bank‘s advantages in information, monitoring, and risk management are the potential mechanisms. In addition, monetary policy has a stronger impact on the real economy through BigTech lending.

03. August 2022

Authors Yiping Huang Xiang Li Han Qiu Changhua Yu

Whom to contact

For Researchers

Professor Xiang Li, PhD
Professor Xiang Li, PhD
Economist

If you have any further questions please contact me.

+49 345 7753-805 Request per E-Mail

For Journalists

Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoSupported by the BMWK