The bank lending channel and monetary transmission in Central and Eastern European countries

Matoušek, Roman; Sarantis, Nicholas

doi:10.1016/j.jce.2008.09.008

Cited by 90 publications

(86 citation statements)

References 33 publications

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“…Secondly, we provide evidence that the bank lending channel (BLC) depends on bank characteristics (liquidity and capital in the case of Turkey) as has been shown by recent empirical studies for transition economies, e.g. Matousek and Sarantis (2009). Thirdly, banks' liberalisation and restructuring 4 processes in the early 1990s and 2001 had the expected effect on the Turkish banking system in terms of improved performance (increased efficiency).…”

Section: Introductionsupporting

confidence: 54%

Monetary policy and the banking sector in Turkey

Akinci¹,

Matoušek²,

Radic³

et al. 2013

Journal of International Financial Markets, Institutions and Mo

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We find evidence that monetary policy influenced bank lending in Turkey in the period 1991 -2007 both directly through the money lending channel and indirectly through the bank lending channel. The bank lending channel is shown to depend on two bank characteristics, namely liquidity and capital. We also find that both capital and GDP growth have plausible positive and significant long-run effects on bank loan growth, whereas inflation, bank size and, in particular, efficiency do not have a significant equilibrium relationship with loan growth. This latter result is despite our finding that the efficiency of all Turkish banks improved over the period. It is also evident that domestic banks are, unexpectedly, found to be more efficient, on average, than foreign banks. We discovered no evidence of significant dynamics or fixed-effects in the growth of loans and so prefer to use the pooled OLS estimator over the fixed-effects and Arellano and Bond estimators. We therefore caution against assuming the existence of fixed-effects and dynamics in such models as this may adversely affect inference.

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Section: Introductionsupporting

confidence: 54%

Monetary policy and the banking sector in Turkey

Akinci¹,

Matoušek²,

Radic³

et al. 2013

Journal of International Financial Markets, Institutions and Mo

Self Cite

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show abstract

“…Both a liberal licensing policy and low minimum capital requirements allowed a high number of new domestic commercial banks to enter the markets. These new players, however, started to engage in harsh price competition with state-owned banks and aggressive lending strategies (Matousek and Sarantis, 2009). This attitude was supported by weaknesses in the legal prudential system.…”

Section: The Cee Banking System and Recent Economic Trendmentioning

confidence: 99%

“…This attitude was supported by weaknesses in the legal prudential system. In this context, several of these new commercial banks, in general small in size, were forced to exit the market or to merge with other banks (Bonin and Wachtel, 2002 (Matousek and Sarantis, 2009). In addition to the growth of foreign investment, reduction of import barriers and development of a tax policy, also the globalization was an important growth factor of CEE economies from 1990 to 2009 (Gurgul and Lach, 2014 (Lo and Rogoff, 2015) in all the areas (EBRD, 2015).…”

Section: The Cee Banking System and Recent Economic Trendmentioning

confidence: 99%

Investigating bank efficiency in transition economies: A window-based weight assurance region approach

et al. 2017

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This paper examines the efficiency of 116 banks for 9 new EU members in Central and Eastern European (CEE) countries over the period [2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015]. We employ the Weight Assurance Region (WAR) and we treat deposits as an intermediate variable in a two-stage data-envelopment analysis model. We then expand the WAR model by including a window-based approach to take into account the patterns of efficiency over time. The results indicate a low level of efficiency over the entire period of analysis, especially for Eastern European and Balkan countries rather than Central European countries. Overall, we find that inefficiency in CEE countries is mainly driven by the profitability stage rather than the value added activity stage.

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“…Empirical studies on the relationship between monetary policy and loan growth outside the US have been dominated by cross-country studies due to data restrictions (Altunbas et al 2002;Ashcraft 2006;Berger 2003). Studies on the US market found evidence of bank lending channels and that different sized banks have different sensitivities to monetary policy (Kishan & Opiela 2000;Matousek & Sarantis 2009). …”

Section: Literature Reviewmentioning

confidence: 99%

The Bank Lending Channel: Evidence from Australia

Deng¹,

Liu²

2014

AABFJ

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This study explores how monetary policy changes flow through the banking sector in Australia. Drawing on data between 2004 and 2010, we divide banks into three groups according to their size, and examine the impact of that cash rate change on lending of different types of loans. We find the response of bank lending after a monetary policy change varies with the size of the bank as well as the types of loan. Smaller banks are more sensitive to policy rate changes, and household loans, government loans and intra-group loans are less responsive to monetary policy compared with financial and non-financial loans. AbstractThis study explores how monetary policy changes flow through the banking sector in Australia. Drawing on data between 2004 and 2010, we divide banks into three groups according to their size, and examine the impact of that cash rate change on lending of different types of loans. We find the response of bank lending after a monetary policy change varies with the size of the bank as well as the types of loan. Smaller banks are more sensitive to policy rate changes, and household loans, government loans and intra-group loans are less responsive to monetary policy compared with financial and non-financial loans.

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The bank lending channel and monetary transmission in Central and Eastern European countries

Cited by 90 publications

References 33 publications

Monetary policy and the banking sector in Turkey

Monetary policy and the banking sector in Turkey

Investigating bank efficiency in transition economies: A window-based weight assurance region approach

The Bank Lending Channel: Evidence from Australia

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