Advanced Search
MyIDEAS: Login to save this article or follow this journal

Politique monétaire et concurrence bancaire


Author Info

  • Bernard BENSAID
  • André DE PALMA


This paper focuses on the monetary policy channels in an imperfect competition framework of the banking sector. It emphasizes the relationship between the commercial banks rate and the lending rate of the central bank. The framework of imperfect competition is provided by the Salop [1979] model of horizontal differentiation which is applied to the banking sector and which is extended, to take account of the loan demand function elasticity. We shown that when the loan demand function is sufficiently convex (log convex), the banking sector exacerbates surprises in the monetary policy. This result is relevant for the efficiency of the monetary policy and for the behavior of the central bank when facing shocks of the loan demand function. Then, we study what should be the optimal implementation of the monetary policy when the central bank is concerned with both the price stability and the financial stability of the banking sector. In the model, the price stability is looked through an quantitative objective for the loans provided by the banking sector. We show that the trade-off between financial stability and price stability induces violent surprises in the monetary policy with respect to the volatility of the loan demand function.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Article provided by ENSAE in its journal Annals of Economics and Statistics.

Volume (Year): (1995)
Issue (Month): 40 ()
Pages: 161-176

as in new window
Handle: RePEc:adr:anecst:y:1995:i:40:p:07

Contact details of provider:
Postal: 3, avenue Pierre Larousse, 92245 Malakoff Cedex
Web page:
More information through EDIRC

Related research



No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Amable, Bruno & Chatelain, Jean-Bernard, 2001. "Can financial infrastructures foster economic development?," Journal of Development Economics, Elsevier, Elsevier, vol. 64(2), pages 481-498, April.
  2. Amable, Bruno & Chatelain, Jean-Bernard & De Bandt, Olivier, 2002. "Optimal capacity in the banking sector and economic growth," Journal of Banking & Finance, Elsevier, Elsevier, vol. 26(2-3), pages 491-517, March.
  3. Amable, Bruno & Chatelain, Jean-Bernard & De Bandt, Olivier, 1998. "Stability versus efficiency of the banking sector and economic growth," CEPREMAP Working Papers (Couverture Orange) 9811, CEPREMAP.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:1995:i:40:p:07. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Gary-Bobo).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.