EconPapers    
Economics at your fingertips  
 

Monetary Policy Transmission in Emerging Asia: The Role of Banks and the Effects of Financial Globalization

Nasha Ananchotikul and Dulani Seneviratne
Additional contact information
Dulani Seneviratne: International Monetary Fund

PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research

Abstract: Given the heavy reliance on bank lending as the main source of financing in most Asian economies, banks could potentially play a pivotal role in monetary policy transmission. However, we find that Asia?s bank lending channel or, more broadly, credit channel of domestic monetary policy is not very strong at the aggregate level. Using bank-level data for nine Asian economies during 2000?2013, we show that heterogeneity of bank characteristics (e.g., ownership type, financial position), degree of foreign bank penetration of the domestic banking sector, and global financial conditions all have a bearing on the response of domestic credit to changes in domestic monetary policy, and may account for the apparently weak credit channel at aggregate level.

Keywords: Monetary policy transmission; bank lending channel; financial globalization (search for similar items in EconPapers)
JEL-codes: E50 E52 E59 (search for similar items in EconPapers)
Date: 2015-11, Revised 2015-11
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Published in PIER Discussion Paper Series

Downloads: (external link)
http://www.pier.or.th/wp-content/uploads/2015/11/pier_dp_007.pdf Published version, 2015 (application/pdf)

Related works:
Working Paper: Monetary Policy Transmission in Emerging Asia; The Role of Banks and the Effects of Financial Globalization (2015) Downloads
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:pui:dpaper:7.

Access Statistics for this paper

More papers in PIER Discussion Papers from Puey Ungphakorn Institute for Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by PIER ().

 
Page updated 2018-07-12
Handle: RePEc:pui:dpaper:7.