How deviations from FOMC’s monetary policy decisions from a benchmark monetary policy rule affect bank profitability: evidence from U.S. banks
Journal article
Authors | Apergis, Nicholas and Lau, Chi Keung Marco |
---|---|
Abstract | This paper aims to provide fresh empirical evidence on how Federal Open Market Committee (FOMC) monetary policy decisions from a benchmark monetary policy rule affect the profitability of US banking institutions. It thereby provides a link between the literature on central bank monetary policy implementation through monetary rules and banks’ profitability. It uses a novel data set from 11,894 US banks, spanning the period 1990 to 2013. The empirical findings show that deviations of FOMC monetary policy decisions from a number of benchmark linear and non-linear monetary (Taylor type) rules exert a negative and statistically significant impact on banks’ profitability. |
Keywords | FOMC monetary policy; monetary policy rule; bank profitability; US banks |
Year | 2017 |
Journal | Journal of Financial Economic Policy |
Publisher | Emerald |
ISSN | 1757-6385 |
Digital Object Identifier (DOI) | https://doi.org/10.1108/JFEP-02-2017-0008 |
Web address (URL) | http://hdl.handle.net/10545/623313 |
http://creativecommons.org/licenses/by-nc-nd/4.0/ | |
hdl:10545/623313 | |
Publication dates | 22 May 2017 |
Publication process dates | |
Deposited | 17 Jan 2019, 17:50 |
Accepted | 22 May 2017 |
Contributors | University of Piraeus and Northumbria University |
File | File Access Level Open |
File | File Access Level Open |
https://repository.derby.ac.uk/item/9306z/how-deviations-from-fomc-s-monetary-policy-decisions-from-a-benchmark-monetary-policy-rule-affect-bank-profitability-evidence-from-u-s-banks
Download files
29
total views0
total downloads0
views this month0
downloads this month