Test of the bank lending channel: The case of Hungary

Yu Hsing
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Yu Hsing: Southeastern Louisiana University

Theoretical and Applied Economics, 2014, vol. XXI, issue 1(590), 115-120

Abstract: This study examines the bank lending channel for Hungary based on a simultaneous-equation model consisting of the demand for and supply of bank loans. The three-stage least squares method is applied. This paper finds evidence of a bank lending channel for Hungary. Expansionary monetary policy via a lower interbank rate or open market purchase of government bonds to increase bank reserves/deposits would increase bank loan supply.

Keywords: bank lending channel; federal funds rate; bank deposits; 3SLS. (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (2)

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