The non-bank financial sector helps to dampen the global impact of US monetary policy shocks, research published by the Bank of England finds.

David Elliott, Ralf R Meisenzahl and José-Luis Peydró carry out an empirical study of how banks and non-banks respond to a US monetary policy tightening. They focus on the syndicated lending market, which allows them to see how banks and non-banks lend to the same firm in the same period. They also control for factors that might impact both lending and