Discussion paper

DP18217 Big Techs and the Credit Channel of Monetary Policy

We document some stylized facts on big tech credit and rationalize them through the lens of a model where big techs facilitate matching on the e-commerce platform and extend loans. The big tech reinforces credit repayment with the threat of exclusion from the platform, while bank credit is secured against collateral. Our model suggests that: (i) a rise in big techs’ matching efficiency increases the value for firms of trading on the platform and the availability of big tech credit; (ii) big tech credit mitigates the initial response of output to a monetary shock, while increasing its persistence; (iii) the efficiency gains generated by big techs are limited by the distortionary fees collected from users.


De Fiore, F, L Gambacorta and C Manea (2023), ‘DP18217 Big Techs and the Credit Channel of Monetary Policy‘, CEPR Discussion Paper No. 18217. CEPR Press, Paris & London. https://cepr.org/publications/dp18217