scholarly journals The Effects of Local Banking Market Structure on the Bank-Lending Channel of Monetary Policy

2005 ◽  
Author(s):  
Robert M. M. Adams ◽  
Dean F. Amel
Keyword(s):  
Monetary Policy ◽  
Market Structure ◽  
Bank Lending ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Banking Market

scholarly journals Market structure, state ownership and monetary policy transmission through bank lending channel: Evidence from Vietnamese commercial banks

2021 ◽  
Vol 10 (3) ◽  
pp. 164-177
Author(s):  
Huu Huan Nguyen ◽  
Minh Vu Ngo ◽  
Thanh Phuc Nguyen
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Market Structure ◽  
Commercial Banks ◽  
Banking Sector ◽  
Bank Lending ◽  
State Ownership ◽  
Bank Loan ◽  
Bank Lending Channel ◽  
Lending Channel

This paper examines the impact of market structure and state ownership on bank lending as a transmission channel for monetary policies. For controlling the effects of bank heterogeneities and macroeconomic factors on bank lending, dynamic models using two-step difference GMM with panel data collected from 25 Vietnamese commercial banks and the Vietnamese banking sector from 1999 to 2017 are employed. Results indicate that a higher level of concentration in the banking market and state ownership dampen the expected impacts of interbank interest rate on the loan growth in commercial banks, which decreases the effectiveness of monetary policy via the bank lending channel. These results are robust regarding the use of alternative measures of market structure and the inclusion of event time variables in the dynamic model. Based on the findings, monetary policy could be implied using the significant moderating impacts of state-ownership as well as the market structure of the Vietnamese banking sector on the relationship between bank loan supply and interbank interest rate.

Bank lending channel and banking sector efficiency: panel data of Egypt

2018 ◽  
Vol 13 (5) ◽  
pp. 1291-1310 ◽  
Author(s):  
Mohamed Aseel Shokr ◽  
Anwar Al-Gasaymeh
Keyword(s):  
Monetary Policy ◽  
Panel Data ◽  
Banking Sector ◽  
Generalized Method Of Moments ◽  
Bank Lending ◽  
Bank Loan ◽  
Bank Lending Channel ◽  
Bank Efficiency ◽  
Content Type ◽  
Lending Channel

Purpose The purpose of this paper is to examine the relevance of the bank lending channel (BLC) of monetary policy and the bank efficiency in Egypt. Design/methodology/approach This paper examines the effectiveness of bank lending channel using generalized method of moments GMM model during the period from 1996 to 2014. Also, it uses stochastic frontier approach (SFA) to examine the bank efficiency in Egypt. Findings This study supports the relevance of the BLC using panel data. Moreover, applying SFA, this paper computes cost efficiency taking account of both time and country effects directly. The finding suggests that banks with low inflation and high GDP tend to perform more efficiently. Research limitations/implications The limitation of the study is examining one country only. Practical implications The finding signals that the Central Bank of Egypt (CBE) should adjust interest rate in order to stabilize the bank loan supply. Social implications It is important for the CBE and Egyptian banks because it highlights the importance of BLC. Originality/value It examines one channel of monetary policy and bank efficiency in Egypt.

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