We quantify the impact of bank market power on monetary policy transmission through banks to borrowers. We estimate a dynamic banking model in which monetary policy affects imperfectly competitive banks' funding costs. Banks optimize the pass-through of these costs to borrowers and depositors, while facing capital and reserve regulation. We find that bank market power explains much of the transmission of monetary policy to borrowers, with an effect comparable to that of bank capital regulation. When the federal funds rate falls below 0.9%, market power interacts with bank capital regulation to produce a reversal of the effect of monetary policy.

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银行市场力量与货币政策传导：来自结构性估计的证据

我们量化了银行市场力量对通过银行向借款人传导货币政策的影响。我们估计了一个动态银行模型，其中货币政策会影响不完全竞争银行的融资成本。银行优化将这些成本转嫁给借款人和存款人，同时面临资本和准备金监管。我们发现，银行市场力量解释了货币政策向借款人传导的大部分原因，其效果与银行资本监管的效果相当。当联邦基金利率低于 0.9% 时，市场力量与银行资本监管相互作用，产生货币政策效果的逆转。