The transmission mechanism of monetary policy in Japan: Evidence from banks' balance sheets

Hosono, Kaoru

doi:10.1016/j.jjie.2005.07.003

Cited by 54 publications

(57 citation statements)

References 31 publications

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“…We used ratio of base money defined as the sum of currency in circulation and the deposits of the commercial banks with the central bank divided by nominal GDP as indicator of tight (lose) monetary policy. This ratio tends to increase during expansionary monetary policy regime and decreases during contractionary policy regime (Hosono, 2005). We interpret the changes in monetary policy will alter the credit demand by the firms, which will affect the loan portfolio of the banks and subsequently earnings.…”

Section: Optimal Dividend Payout and Adjustment Speedmentioning

confidence: 92%

“…Tight money market conditions lower down the interest income from the loans (see e.g., Hülsewig et al, 2006;Kashyap and Stein, 1995). Hosono (2005) finds that the effect of monetary policy is stronger for banks that are smaller, less liquid, and more abundant with capital in Japan. It can be hypothesized that fall in the banks' income would lead management to revise their earnings' expectations.…”

Section: Regulatory Influence On the Dividendsmentioning

confidence: 99%

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Product market competition, regulation and dividend payout policy of Malaysian banks

Ameer

2008

Journal of Financial Regulation and Compliance

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Purpose -This paper investigates the impact of the product market competition, regulations on the dividend policies of the listed banks, over the period of 1995-2005 in Malaysia. Methodology -Ordered Probit modelling technique and target adjustment model. Findings-We find significant differences in the payout of the banks categorized as selling a non-interest based banking products and mix of both interest and non-interest based banking products. We find that the decision to increase dividends is significantly related to earnings, and the decision to cut dividend is significantly related to the changes in the non-performing loans, corporate and real estate sectors loans ratio and earnings loses. Research implications -Research findings have implication for the regulators of the banks. Originality/value -The research provides a clear link between banks' portfolio choice and earnings that have implications for the dividends in the emerging markets.

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Section: Optimal Dividend Payout and Adjustment Speedmentioning

confidence: 92%

Section: Regulatory Influence On the Dividendsmentioning

confidence: 99%

Product market competition, regulation and dividend payout policy of Malaysian banks

Ameer

2008

Journal of Financial Regulation and Compliance

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“…Therefore, they verified the importance of the bank lending channel. In Japan, Hosono (2006) substantiated the existence of the bank lending channel, using aggregate data. In China, Sun et al (2010) also confirmed the existence of the bank lending channel of monetary policy, using ag gregate data.…”

Section: Evidence Of the Bank Lending Channel: Macro-level Studymentioning

confidence: 99%

The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt

Shokr

Karim

Jusoh

et al. 2014

GADJAH MADA INT. J. BUS.

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This paper examines the relevance of the bank lending channel of monetary policy in Egypt using bank-level data. Previous empirical studies in Egypt that used macro-level data have not supported the relevance of the bank lending channel. However, using a sample of 32 commercial banks for the period from 1998 until 2011 and a dynamic panel GMM technique, the empirical findings revealed the relevance of the bank lending channel of monetary policy in Egypt. Moreover, there is a heterogeneity effect of monetary policy on bank loans according to bank size, in which the small banks are more affected during a monetary contraction than larger banks. This finding signals that the monetary authorities in Egypt should take cognizance of the stability of interest rates in order to stabilize the bank loan supply.Abstrak: Makalah ini membahas relevansi bank penyalur pinjaman kebijakan moneter/bank sentral di Mesir dengan menggunakan data bank bertingkat. Beberapa studi empiris sebelumnya yang menggunakan data tingkat makro belum mendukung relevansi penyaluran pinjaman bank. Namun, dengan menggunakan sampel dari 32 bank umum dari periode 1998 hingga 2011 dan dengan memakai teknik panel GMM dinamis, kami menemukan bukti empiris yang menunjukkan adanya relevansi saluran peminjaman bank kebijakan moneter di Mesir. Selain itu, ada efek heterogenitas kebijakan moneter pinjaman bank sesuai dengan ukuran bank, di mana pada umumnya bank yang kecil lebih terpengaruh selama kontraksi moneter dibandingkan dengan bank yang lebih besar. Temuan ini menunjukan bahwa pihak otoritas moneter di Mesir harus bertanggung jawab atas kestabilan suku bunga agar terjaga kestabilan pasokan pinjaman bank.

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“…Fujiwara (2007) investigates the effect of real balances (real M2 plus certificates of deposit) on real activity on Japan, given that interest rates are at extremely low levels, and finds that money has only a small direct effect in Japan. Hosono (2006) examines in detail the bank balance sheet mechanism by which monetary policy is transmitted in Japan. (2000) and Koray and McMillin (1999).…”

Section: The Variables and Datamentioning

confidence: 99%

Not All International Monetary Shocks are Alike for the Japanese Economy

Ratti

Vespignani

2014

SSRN Journal

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It is found that over 1999:1-2012:12 China's monetary expansion influences Japan through the effect of China's growth on world commodity prices, increased demand for imports, and exchange rate policy. China's monetary expansion is associated with significant increases in Japan's industrial production, exports and inflation, and decreases in the trade-weighted yen. In contrast, U.S. monetary expansion results in contraction in Japan's industrial production, exports and trade balance (expenditure-switching). Monetary expansion in the Euro area does not significantly affect Japan. Structural vector error correction models are estimated. Results are robust to various contemporaneous restrictions for the effect of international monetary variables, the interaction of foreign and domestic variables and to factor augmented VAR to identify monetary shocks.

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The transmission mechanism of monetary policy in Japan: Evidence from banks' balance sheets

Cited by 54 publications

References 31 publications

Product market competition, regulation and dividend payout policy of Malaysian banks

Product market competition, regulation and dividend payout policy of Malaysian banks

The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt

Not All International Monetary Shocks are Alike for the Japanese Economy

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