The bank lending channel and monetary transmission in Central, Eastern and South-Eastern European countries

Meri Papavangjeli

MPRA Paper from University Library of Munich, Germany

Abstract: Using disaggregated data for 266 individual banks from Bankscope database and other supplementary sources, this article investigates the functioning of the bank lending channel and monetary transmission in 10 Central, Eastern and South-Eastern European (CESEE) countries over the period 2010-2018. It also takes into account the banks’ characteristics such as: size and capitalisation, classifying the countries in three groups according to the development level of their banking sector, captured by the EBRD banking reform criteria. Results confirm the theory of bank lending channel, with smaller banks being more sensitive to monetary contractions in less developed financial systems. Capitalisation has a positive effect on loan growth, and changes in funding costs have the most significant impact on small and less capitalised banks. GDP growth and inflation have a positive impact on loan growth in all country groups.

Keywords: bank lending channel; size and capitalisation; monetary transmission (search for similar items in EconPapers)
JEL-codes: C51 E51 G21 P34 (search for similar items in EconPapers)
Date: 2021-07-10
New Economics Papers: this item is included in nep-fdg, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in Bank of Albania Economic Review 2021 H1 (2021): pp. 1-15

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/116919/1/MPRA_paper_116919.pdf original version (application/pdf)

Related works:
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:pra:mprapa:116919

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().