Effects of banking sector and capital market development on the bank lending channel of monetary policy: An ASEAN country case study

Lerskullawat, Attasuda

doi:10.1016/j.kjss.2016.10.001

Cited by 23 publications

(16 citation statements)

References 16 publications

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“…Also, the MS-models showed that the magnitude or significance of these empirical relationships is more under a "higher response regime." Similarly, Partachi and Mija (2015) emphasized that MPR influences the direction of the national economy and stimulates interest for refinancing banks as they require more loans, used for lending to the economy, thereby stimulating economic activities and fostering sustainable growth (see Donath, Veronica, & Oprea, 2015;Jain-Chandra & Unsal, 2014;Lerskullawat, 2017;Matemilola, Bany-Ariffin, & Muhtar, 2015;Rosoiu, 2015b;Wulandari, 2012). Kalu (2017) analyzed the nature of the relationship between monetary policy and private sector credit in Nigeria.…”

Section: Empirical Reviewsmentioning

confidence: 99%

Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria

et al. 2018

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The goal of this study is to assess the industry effects of monetary policy transmission channels in Nigeria within the period 1981-2014. Techniques of analysis employed in the study are the Johansen cointegration and the error correction model (ECM). Our regression estimates reveal that the private sector credit, interest rate, and exchange rate channels have negative effects on real output growth, both in the long run and in the short run. The results further show that, relatively, the degrees of the established effects are higher in the long run than in the short run. We employed the Johansen cointegration approach to determine the nature of relationship that exists between our dependent variable and the independent variables. The results show that, in the Nigerian case, monetary policy transmission channels jointly have a long-run relationship with real output growth of the industrial sector, and disequilibrium in the system is corrected at the speed of 72.2% annually.

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Section: Empirical Reviewsmentioning

confidence: 99%

Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria

et al. 2018

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“…Thus, banks are no longer considered as the center of financial intermediation, as they could be replaced by other financial institutions, such as capital market, microfinance (cooperative), crowd funding, and many others. Because of the importance of banking sector and financial market role, financial market such as the capital market has a significant effect on the banking sector and the credit sector (Lerskullawat, 2016 As shown in Figure 1, credit/financing through the capital market has experienced fluctuating growth over the past five years by 30.22%. Its growth is still above the growth of bank credit, especially conventional banking credit which only grew 8.24% at the end of 2017, which indicates that the public, with the large companies in particular, prefers to choose the capital market as their source of capital rather than applying credit or financing to the bank.…”

Section: Introductionmentioning

confidence: 99%

Monetary Transmission Mechanism Under Dual Financial System in Indonesia: Credit-Financing Channel

Fikri¹

2019

JIMF

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The presence of Islamic and conventional banking in the dual financial system of Indonesia equally hold the role as financial intermediator which theoretically banks collect fund from the debitors to be distributed to creditors. However, along with the changing of time there has been a development in the financial industry, when financial deregulation occurs, where the role of providing credit is not only owned by the banks but also other financial institutions. As the result, banks are no longer considered as the center of financial intermediation but could be replaced by other financial instruments. This study aims to reconsider the role of banking as financial intermediation in the monetary transmission mechanism using three methodoligal approaches which are Vector Autoregression and Vector Error Correction Model (VAR-VECM), Error Correction Model (ECM), and Autoregressive Distributed Lag (ARDL). The long-term results of ECM and VECM estimations both show that credit and finacing channel are still relevant to be employed in the monetary transmission mechanism after the development of financial sector and the change of monetary policy, yet only have an impact to economy and do not give effect to inflation. While the result of ARDL estimation indicates that none of the variables affect the monetary policy objectives which means that credit and financing channel are considered to be getting weaker in the monetary transmission mechanism. Keywords : Monetary Transmission Mechanism, Credit Channel, Dual Financial System JEL Classification: E51, E52, E58

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“…tBerbeda thalnya tdengan perusahaan. tPerusahaan tsebagai tpihak tyang tmemerlukan tdana tdapat memanfaatkan tdana ttersebut tuntuk tmengembangkan tproyek-proyeknya (Lerskullawat, 2017).…”

Section: Pendahuluanunclassified

Pembentukan Portofolio Optimal Dengan Menggunakan Model Indeks Tunggal

Prasetyo

Suarjaya

2020

EJMUNUD

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The purpose of this study is to determine the stocks of the Kompas 100 Index that can form optimal portfolios and to find out the proportions of each selected stock and the level of return and risk of the resulting portfolio. Single Index Model with descriptive analysis was used. The data was obtained from the IDX, Yahoo Finance, and BI. The population in this study amounted to 77 shares. The number of samples taken was 65 company shares from the Kompas 100 Index, using the Slovin method. Based on the results of the analysis obtained from 65 shares of Kompas 100 members obtained a combination of 20 shares that can form an optimal portfolio of BUMI, MAPI, INCO, DOID, INDY, CPIN, BKSL, ACES, MEDC, ITM, UNTR, TINS, BDMN, JPFA, BBCA, BJBR, PNBN, TARA, PBRX and ANTM with portfolio expected return of 3.20 percent with a risk of 0.11 percent. Keywords: Compass 100 Index, Single Index Model, Optimal Portfolio

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Effects of banking sector and capital market development on the bank lending channel of monetary policy: An ASEAN country case study

Cited by 23 publications

References 16 publications

Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria

Monetary Policy Transmission and Industrial Sector Growth: Empirical Evidence From Nigeria

Monetary Transmission Mechanism Under Dual Financial System in Indonesia: Credit-Financing Channel

Pembentukan Portofolio Optimal Dengan Menggunakan Model Indeks Tunggal

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