Nonbanks, credit provision and the transmission of monetary policy in Denmark

Economic Memo - November 2021 - No. 8

Authors Cucic, Dominic; Gorea, Denis
Subject Monetary policy; Lending rate; Financial sector
Type Economic Memo
Year 2021
Published 29 November 2021
Abstract icon We analyse the role of nonbank lenders in corporate and consumer credit markets in Denmark and show that they affect the transmission of monetary policy to financial and real outcomes. Nonbanks increase their share of credit supply after an interest rate hike in both the consumer and corporate credit markets.