INTEREST RATE PASS-THROUGH IN COLOMBIA: A MICRO- BANKING PERSPECTIVE

Yanneth Betancourt-Garcia, Hernando Vargas-Herrera and Norberto Rodríguez Niño ()
Authors registered in the RePEc Author Service: Norberto Rodríguez ()

No 2909, Borradores de Economia from Banco de la Republica

Abstract: Banks and other credit institutions are key players in the transmission of monetary policy, especially in emerging market economies, where 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 illustrates this point by means of a theoretical micro-banking model and shows empirical evidence for Colombia suggesting that some aspects of the model might be relevant features of the transmission mechanism.

Keywords: Monetary transmission mechanisms; interest rate pass-through; banking (search for similar items in EconPapers)
JEL-codes: E43 E44 G21 (search for similar items in EconPapers)
Pages: 40
Date: 2006-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.banrep.gov.co/docum/ftp/borra407.pdf

Related works:
Journal Article: Interest Rate Pass-Through in Colombia: a Micro-Banking Perspective (2008)
Working Paper: INTEREST RATE PASS-THROUGH IN COLOMBIA: A MICRO-BANKING PERSPECTIVE (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:col:000094:002909

Access Statistics for this paper

More papers in Borradores de Economia from Banco de la Republica
Bibliographic data for series maintained by Clorith Angelica Bahos Olivera ().