INTEREST RATE PASS-THROUGH IN COLOMBIA: A MICRO-BANKING PERSPECTIVE

Yanneth Betancourt-Garcia, Hernando Vargas-Herrera and Norberto Rodríguez N. ()

Borradores de Economia from Banco de la Republica de Colombia

Abstract: Banks and other credit institutions are key players in the transmission of monetary policy, especially in emerging market economies, where the responses of deposit and loan interest rates to shifts in policy rates are among the most important channels. This pass-through depends on the conditions prevailing in the loan and deposit markets, which are, in turn, affected by macroeconomic factors. Hence, when setting their policy, monetary authorities must take into account those conditions and the behavior of banks. This paper illustrates this point by means of a theoretical micro-banking model and shows empirical evidence for Colombia suggesting that some aspects of the model might be relevant features of the transmission mechanism.

Keywords: Monetary Transmission Mechanisms; Interest Rate Pass-Through; Banking (search for similar items in EconPapers)
JEL-codes: E43 E44 E52 G21 (search for similar items in EconPapers)
Date: 2006-10
New Economics Papers: this item is included in nep-ban, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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https://doi.org/10.32468/be.407 (application/pdf)

Related works:
Journal Article: Interest Rate Pass-Through in Colombia: a Micro-Banking Perspective (2008)
Working Paper: INTEREST RATE PASS-THROUGH IN COLOMBIA: A MICRO- BANKING PERSPECTIVE (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:bdr:borrec:407

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