Interest Rate Pass-Through in Colombia: a Micro-Banking Perspective

Yanneth Rocio Betancourt (), Hernando Vargas and Norberto Rodríguez.

Cuadernos de Economía (Latin American Journal of Economics), 2008, vol. 45, issue 131, pages 29-58

Abstract: Banks and other credit institutions are key players in the transmission of monetary policy, especially when 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 shows this point using a micro-banking model and presents supporting empirical evidence based on monthly data for Colombia between 1999 and 2006.

Keywords: Monetary Transmission Mechanisms; Interest Rate Pass-Through; Banking. (search for similar items in EconPapers)
JEL-codes: G21 E43 E52 (search for similar items in EconPapers)
Date: 2008
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Related works:
Working Paper: INTEREST RATE PASS-THROUGH IN COLOMBIA: A MICRO-BANKING PERSPECTIVE
Working Paper: INTEREST RATE PASS-THROUGH IN COLOMBIA: A MICRO- BANKING PERSPECTIVE (2006)
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