Do Bank Characteristics Affect Bank Lending Behaviour?

Offiong Helen Solomon, Andy Mullineux and Phillip De Jager ()
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Phillip De Jager: University of Westminster

The African Finance Journal, 2022, vol. 24, issue 1, 1-15

Abstract: This paper investigates the bank lending behaviour in South Africa to see how banks with different characteristics and different types of loans react during changes in interest rates. We find asymmetric effects in the adjustment of loan supply by banks of different characteristics during periods of monetary easing. Smaller, less liquid, poorly capitalised banks are slower in adjusting loan supply during periods of monetary easing. Our study reveals that we may be missing significant information about the monetary transmission mechanism in South Africa by not using bank loan components in analysis.

Keywords: Bank characteristics; Bank lending channel; Monetary policy; Panel data; South Africa (search for similar items in EconPapers)
JEL-codes: C23 C26 E52 N17 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:afj:journl:v:24:y:2022:i:1:p:1-15

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