scholarly journals Impact Study of Central Bank Communication to Money Market Benchmark Interest Rate

2016 ◽  
Vol 04 (02) ◽  
pp. 69-78 ◽  
Author(s):  
Liping Zhou ◽  
Haishan Wu
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Money Market ◽  
Impact Study ◽  
Central Bank Communication

Do monetary policy transparency and central bank communication reduce interest rate disagreement?

2019 ◽  
Vol 39 (3) ◽  
pp. 368-393
Author(s):  
Ruttachai Seelajaroen ◽  
Pornanong Budsaratragoon ◽  
Boonlert Jitmaneeroj
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Central Bank ◽  
Central Bank Communication ◽  
Monetary Policy Transparency

Eliminating Trust Issues in Islamic Interbank Monetary System by Blockchain Technology

2020 ◽  
pp. 1-11
Author(s):  
Muhammet Furkan Yavuz ◽  
Buerhan Saiti
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Financial System ◽  
Money Market ◽  
Islamic Banks ◽  
Test Results ◽  
Profit Rate ◽  
Monetary System ◽  
Blockchain Technology ◽  
Incentive Problem

In the literature, it is argued that there is an agency or incentive problem in the Mudarabah Interbank Instrument (MII), an instrument where the depositor is the rabbul-mal (capital provider or investor) while the counterparty is the mudarib or entrepreneur. It is to the receiving bank's advantage to ‘declare' a lower profit rate. To solve this problem, the Malaysian Central Bank revised the rules by setting a minimum benchmark rate for the MII. This practice is quite similar to the fixed interest rate in conventional financial system which may trigger several Shariah issues. In this chapter, the authors argue that the blockchain technology is a better way to address the issue and propose and how it overcomes the issue in the Islamic interbank money market. As implication of the study, Islamic banks can start using it as a testing process for the future businesses, and in accordance with the analyzing test results, they can implement the system for every occasion.

The effect of negative policy rates on the interest-rate pass-through mechanism in the eurozone

2019 ◽  
Vol 7 (2) ◽  
pp. 247-262 ◽  
Author(s):  
Yannis Panagopoulos ◽  
Ekaterini Tsouma
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Money Market ◽  
Negative Interest Rates ◽  
Time Period ◽  
Pass Through ◽  
The Interest Rate ◽  
The Impact ◽  
The Relationship

This paper examines the impact of the June 2014 switch to negative interest rates (NIRs) by the European Central Bank (ECB) on the operation of the eurozone interest-rate pass-through (IRPT) mechanism. We focus on the relationship between major central-bank policy rates and selected money-market rates. That link is identified as the first stage of the IRPT mechanism and its dynamics are analysed using Granger causality and cointegration techniques for the time period January 2000–June 2017. Our empirical findings indicate a feedback relationship between the ECB policy and the money-market rates in the period prior to June 2014, but that relationship is non-operative when considering only the period of NIRs.

scholarly journals The impact of the excess reserves of the banking sector on interest rates and money supply in Poland

2021 ◽  
Author(s):  
Mariusz Kapuściński ◽  
Ilona Pietryka
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rates ◽  
Money Supply ◽  
Banking Sector ◽  
Money Market ◽  
Vector Autoregressive ◽  
Excess Reserves ◽  
Market Interest Rate ◽  
The Impact

In this monograph we aim to analyse the effects of leaving excess reserves in the banking sector by the central bank on the level and the variability of interest rates, as well as on money supply. To this end, we use mainly data for Poland, but in some cases, for robustness, also for a panel of Poland, the euro area, the Czech Republic and Hungary, as there had only been a limited variability in some policy variables in our sample for Poland. We estimate the parameters of GARCH, (P)VAR (vector autoregressive or panel vector autoregressive) and (panel) linear regression models. We find that excess reserves affect the level and the variability of an overnight money market interest rate. However, the variability of the overnight money market interest rate, shaped to a large extent by excess reserves, does not affect the level of longer-term interest rates, and we find little evidence of its impact on their variability. Neither do excess reserves translate into higher money supply. Our results imply that the current monetary policy operational framework in Poland is adequate to ensure the transmission of the central bank policy rate to money market interest rates. Furthermore, it appears unlikely that raising the amount of excess reserves left, as proposed by some policymakers, would affect money supply. Instead, it would lower the money multiplier and the overnight money market interest rate, as well as increase its volatility.

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