The DOI matches its Crossref record.
An Adverse-Selection Model of Bank Asset and Liability Management with Implications for the Transmission of Monetary Policy
Abstract
This paper develops a model of bank asset and liability management, based on the idea that information problems make it difficult for banks to raise funds with instruments other than insured deposits. The model can be used to address the question of how monetary policy works. One effect it captures is that when the Fed reduces reserves, this tightens banks' financing constraints and thereby leads to a cutback in bank lending -- this is the 'bank lending channel' in action. However, in addition to providing a specific set of microfoundations for the lending channel, the model also yields a novel account of how monetary policy affects bond-market interest rates.
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Citations
Cited by
Banks as Liquidity Providers: An Explanation for the Coexistence of Lending and Deposit‐taking
Kashyap, A. K., Rajan, R., & Stein, J. C. (2002) · The Journal of Finance · doi:10.1111/1540-6261.00415 · Cited by 1,442
Self-citationThe impact of monetary policy on bank balance sheets
Kashyap, A. K., & Stein, J. C. (1995) · Carnegie-Rochester Conference Series on Public Policy · doi:10.1016/0167-2231(95)00032-u · Cited by 1,130
Self-citationMonetary Policy as Financial Stability Regulation
Stein, J. C. (2012) · The Quarterly Journal of Economics · doi:10.1093/qje/qjr054 · Cited by 846
Self-citationBank profitability and the business cycle
Albertazzi, U., & Gambacorta, L. (2009) · Journal of Financial Stability · doi:10.1016/j.jfs.2008.10.002 · Cited by 802
Does bank capital affect lending behavior?
Gambacorta, L., & Mistrulli, P. E. (2004) · Journal of Financial Intermediation · doi:10.1016/j.jfi.2004.06.001 · Cited by 782
Metadata
- Authors
- Stein, J. C.
- Venue
- The RAND Journal of Economics
- Publisher
- Wiley
- Published
- 1998
- Volume
- 29
- Issue
- 3
- Pages
- 466
- ISSN
- 0741-6261 (ISSN-L)
- OpenAlex
- W1999406276
- Cited by
- 510
- References
- 0
- FWCI
- 14.04
- Type
- journal article
- Language
- en
- Open access
- closed
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- CoChat. (2026). Citation check: An Adverse-Selection Model of Bank Asset and Liability Management with Implications for the Transmission of Monetary Policy. https://app.cochat.ai/papers/10.2307/2556100
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- Stein, J. C. (1998). An Adverse-Selection Model of Bank Asset and Liability Management with Implications for the Transmission of Monetary Policy. The RAND Journal of Economics. https://doi.org/10.2307/2556100
Data sources
Bibliographic data: Semantic Scholar, OpenAlex, Crossref.
Contains information from the Semantic Scholar Academic Graph Datasets, made available under the ODC Attribution License (ODC-BY 1.0).
Semantic Scholar’s data is described in: Kinney, R., et al. (2023). The Semantic Scholar Open Data Platform. arXiv:2301.10140.
