Template-Type: ReDIF-Paper 1.0
Author-Name: Divya  Kirti
Author-Name-First: Divya 
Author-Name-Last: Kirti
Author-Email: dkirti@imf.org
Author-Workplace-Name: International Monetary Fund
Author-Name: Maria Soledad  Martinez Peria
Author-Name-First: Maria Soledad 
Author-Name-Last: Martinez Peria
Author-Email: mmartinezperia@imf.org
Author-Workplace-Name: International Monetary Fund
Author-Name: Prachi  Mishra
Author-Name-First: Prachi 
Author-Name-Last: Mishra
Author-Email: prachi.mishra@ashoka.edu.in
Author-Workplace-Name: Department of Economics and Isaac Center for Public Policy, Ashoka University
Author-Name: Jan  Strasky
Author-Name-First: Jan 
Author-Name-Last: Strasky
Author-Email: jan.strasky@oecd.org
Author-Workplace-Name: Organisation for Economic Cooperation and Development
Title: What Policy Combinations Worked? The Effect of Policy Packages on Bank Lending during COVID-19* 
Abstract: In response to COVID-19, countries frequently adopted multiple types of policies to address the economic and financial effects of the pandemic. This paper analyzes the impact on bank lending of combinations or packages of policies (fiscal, monetary, and prudential) adopted across a broad sample of countries. Using a comprehensive policy announcement level dataset together with bank level information, we find that lending grew faster at banks in countries which announced large packages combining fiscal, monetary, and prudential measures (“All-out” packages), especially when uncertainty was high. Both the scope and size of policy packages were important: packages combining all three types of policies, but where only some were large, were relatively less effective in enhancing credit. The impact was stronger among more constrained banks with low equity levels. “All-out” packages also increased liquidity for bank dependent firms but did not disproportionately benefit unviable firms. 
length: 47
Creation-Date: 20250509
Revision-Date: 
Publication-Status: 
File-URL:/www/wwwashokaeduin_628/public/dp/RePEc/ash/wpaper/paper47_0.pdf
File-Format: Application/pdf 
Number: 47
Handle: RePEc:ash:wpaper:47