Transparency in Central Bank and Credit Expansion: Empirical Evidence from Asian Countries

Saeed Sazzad Jeris, Omar Bari Md. Ibrahim (), Ferdous Ahmed Chowdhury () and Humaira Begum ()
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Omar Bari Md. Ibrahim: University of Windsor, Windsor, Ontario, Canada
Ferdous Ahmed Chowdhury: Fairleigh Dickinson University, Vancouver, British Columbia, Canada
Humaira Begum: Hajee Mohammad Danesh Science and Technology University, Dinajpur, Bangladesh

Journal of Central Banking Theory and Practice, 2024, vol. 13, issue 3, 271-289

Abstract: This research investigated the influence of central bank transparency on credit expansion in 15 Asian nations (both advanced and emerging) during the period from 2000 to 2019. Panel OLS and Dynamic GMM estimation are used to identify the impact of central bank transparency on the credit spread. The findings indicate that central bank transparency plays a crucial role in lowering credit spreads and facilitating credit expansion. In addition, the influence of central bank transparency on credit spreads has a greater effect in emerging economies than in developed economies, highlighting the significance of transparency for tackling information asymmetry within the credit system. Overall, the research highlights the significance of central bank independence in reducing knowledge disparities and promoting a more transparent credit environment.

Keywords: Central bank transparency; credit spread; Asia; GMM; OLS. (search for similar items in EconPapers)
JEL-codes: E51 E52 E58 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:cbk:journl:v:13:y:2024:i:3:p:271-289

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