An empirical comparison of credit channel in emerging markets: evidence from five Asian economies
Muhamed Zulkhibri ()
International Journal of Monetary Economics and Finance, 2013, vol. 6, issue 1, 17-39
This paper examines the existence of credit channel in five Asian economies namely Malaysia, Indonesia, Thailand, Philippines and Korea. We estimate a variant of bank loan demand and supply model using a structural vector error correction (SVEC) model to deal with fundamental issue of identification problems. The empirical findings of the bank lending channel from these countries suggest that bank loans decline following the monetary contraction, consistent with the credit channel view. However, it is not clear whether the credit supply is really the binding constraint using the aggregate data, in the event that both credit supply and demand felt simultaneously following monetary policy shock. The results from the aggregate data cannot fully explain the monetary transmission via credit channel. Hence, employing firm-level data approach may shed further insights on the credit channel transmission mechanism.
Keywords: bank lending channels; monetary transmission; vector error correction; modelling; credit channels; emerging markets; Malaysia; Indonesia; Thailand; Philippines; Korea; bank loans; credit supply; credit demand. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ids:ijmefi:v:6:y:2013:i:1:p:17-39
Access Statistics for this article
More articles in International Journal of Monetary Economics and Finance from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Carmel O'Grady (). This e-mail address is bad, please contact .