Off-Balance Sheet Banking and Bank Lending Channel of Monetary Transmission: Evidence from South Asia

2012 ◽  
Author(s):  
Anil Perera ◽  
Deborah Ralston ◽  
J. Wickramanayake
Keyword(s):  
South Asia ◽  
Balance Sheet ◽  
Bank Lending ◽  
Monetary Transmission ◽  
Bank Lending Channel ◽  
Lending Channel

scholarly journals A relevância do canal de empréstimos bancários no Brasil

2008 ◽  
Vol 6 (3) ◽  
pp. 359
Author(s):  
Fernando Nascimento de Oliveira ◽  
Renato Da Motta Andrade Neto
Keyword(s):  
Commercial Banks ◽  
Balance Sheet ◽  
Bank Lending ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Monetary Shocks ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Demand Deposits ◽  
The Empirical Analysis

This paper evaluates the existence of an active bank-lending channel of monetary policy. The empirical analysis is based on a two-step regression that tests how the liquidity of commercial banks reacted to monetary shocks. We use balance sheet information of 293 commercial banks from July 1994 to December 2005. Our main conclusion is that the banklending channel is relevant for our understanding of the monetary transmission mechanism in Brazil. This result is found when monetary shocks are identified by the SELIC rate endogenously or exogenously or by required reserves over demand deposits.

What Do a Million Observations on Banks Say About the Transmission of Monetary Policy?

2000 ◽  
Vol 90 (3) ◽  
pp. 407-428 ◽  
Author(s):  
Anil K Kashyap ◽  
Jeremy C Stein
Keyword(s):  
Monetary Policy ◽  
Bank Lending ◽  
Monetary Transmission ◽  
Bank Lending Channel ◽  
Data Set ◽  
Balance Sheets ◽  
Lending Channel ◽  
The Impact ◽  
Transmission Of Monetary Policy ◽  
Quantitative Importance

We study the monetary-transmission mechanism with a data set that includes quarterly observations of every insured U.S. commercial bank from 1976 to 1993. We find that the impact of monetary policy on lending is stronger for banks with less liquid balance sheets—i.e., banks with lower ratios of securities to assets. Moreover, this pattern is largely attributable to the smaller banks, those in the bottom 95 percent of the size distribution. Our results support the existence of a “bank lending channel” of monetary transmission, though they do not allow us to make precise statements about its quantitative importance. (JEL E44, E52, G32)

scholarly journals Monetary Policy And Bank Lending Chanel in Turkey

2017 ◽  
Vol 6 (2) ◽  
pp. 24 ◽  
Author(s):  
Zafer Adalı ◽  
Bilgin Bari
Keyword(s):  
Price Index ◽  
Balance Sheet ◽  
Impulse Response Function ◽  
Bank Lending ◽  
Positive Influence ◽  
Var Model ◽  
Bank Lending Channel ◽  
Producer Price ◽  
Lending Channel ◽  
Main Determinants

<p><em>The main purpose of this study is to evaluate whether the bank lending channel exist or not. Within this context, quarterly data of for the periods between 2002q1 and 2016q4 was taken into the consideration. Additionally, VAR model was used to reach the objective. According to the result of impulse response function, it was reached that</em><em> producer price index, real exchange rate and policy rate are effective determinants. Additionally, banks balance sheet has important and positive influence on total credits but industrial production index is regarded as partially effective. While considering this result, it was also found that both bank balance and macroeconomic variables used in this study is the main determinants of bank total credit.</em></p>

scholarly journals FINANCIAL DEREGULATION AND THE BANK LENDING CHANNEL IN DEVELOPING COUNTRIES: THE CASE OF INDONESIA

2003 ◽  
Vol 3 (1) ◽  
pp. 121-145
Author(s):  
Juda Agung
Keyword(s):  
Developing Countries ◽  
Monetary Policy ◽  
Dominant Role ◽  
Balance Sheet ◽  
Bank Lending ◽  
Bank Loan ◽  
Bank Lending Channel ◽  
Asymmetry Of Information ◽  
Lending Channel ◽  
The Government

The dominant role of commercial banks as a source of finance and the considerable asymmetry of information in financial markets in developing countries have raised an argument that the bank lending channel of monetary transmission mechanism would be very important in such countries. This study addresses the issue by investigating empirically whether there are differential effects of monetary policy on banks’ balance sheets, and its implications to the existence of the bank lending channel of monetary policy in Indonesia, especially since the early 1980s when the government adopted a policy of financial deveculation. We find significant differences of balance sheet behavior across bank clashes in response to a change in monetary policy, consistent with the predictions of the bank lending view. We also found that because of access to foreign funds and the existence of bank loan commitment, the monetary policy was unable to constrain loan supply by the large (state) banks, indicating that the bank lending channel operates through smaller (non-state) banks.

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