Monetary Policy Pass-through under Internet-OnlyBanks: The case of Mexico
Arturo Lamadrid  1@  , Tapia Alvarado * @
1 : Banco de Mexico  (Banxico)  -  Site web
* : Auteur correspondant

Recently, there is a surge in business models to provide services through the internet.
Banking is no exception yet the advent of internet-only banks may induce unexplored
challenges to monetary policy decisions. We contribute to the economic literature by
implementing a difference-in-difference analysis of the monetary policy pass-through
under the presence of internet-only banks for Mexico. Our identification strategy relies
in two pillars, first we focus on an unexpected monetary policy shift as an exogenous
shock and secondly, we inspect credit across different banks for the same firm. Our
findings suggest that internet-only banks tend to be more sensitive to monetary policy
and riskier than both traditional banks and small banks.

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