Banco de España Blog

Using a simple format and plain language, the Banco de España Blog seeks to make our work more accessible to the general public. It allows us to share our analysis of economic and financial issues and the ins and outs of the Banco de España’s tasks and activities with all those keen to learn more.

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How do interest rates influence the supply of credit?

Series: Focus. Research Videoblog

06/05/2025 Peter Paz

Less capitalized banks tend to be more restrictive when granting credit to small and medium-sized enterprises when interest rates rise. This is one of the main conclusions of the study "The Transmission of Monetary Policy to Credit Supply in the Euro Area" by Miguel García-Posada and Peter Paz.

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