The role of banks in monetary policy transmission: empirical evidence from Russia

Tuuli Juurikkala, Alexei Karas and Laura Solanko

No 8/2009, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: This paper focuses on the role of the banking sector in monetary policy transmission in an emerging economy with a rapidly developing financial system. Specifically, we exam whether the central bank's monetary policy stance affects banks' lending behaviour. Based on a comprehensive quarterly dataset on all Russian banks from 1Q1999 to 1Q2007, we find evidence for the existence of a bank lending channel in Russia. Contrary to several studies on developed economies, the level of a bank's capitalization matters for the transmission process. Better capitalized banks are less likely to adjust their lending practices following a change in the monetary policy stance.

JEL-codes: Q19 Q20 (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: The Role of Banks in Monetary Policy Transmission: Empirical Evidence from Russia (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2009_008

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