Internal Capital Markets in Financial Conglomerates: Evidence from Small Bank Responses to Monetary Policy
通过比较小型附属银行与独立银行对货币政策的反应，发现金融集团的内部资本市场能缓解小银行的信贷约束，并减弱美联储政策对贷款活动的影响，但内部资本市场也会因总部与外部市场间的摩擦导致投资效率低下。
This paper looks at internal capital markets in financial conglomerates by comparing the responses of small subsidiary and independent banks to monetary policy. I find that internal capital markets in financial conglomerates relax the credit constraints faced by smaller bank affiliates. Further analysis indicates that those markets lessen the impact of Fed policies on bank lending activity. The paper also examines the role of internal capital markets in influencing the investment allocation process of those conglomerates. My findings suggest that frictions between conglomerate headquarters and external capital markets are at the root of investment inefficiencies generated by internal capital markets.