This paper carries out a systematic empirical investigation of the bank lending channel of monetary transmission in the 8 CEE countries which have joined the EU: Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia. We examine in particular whether the impact of monetary policy changes on bank lending differs depending on the banks' size, capital strength, liquidity and ownership structure. Panel data for a large number of banks over the period 1994-2003, and dynamic panel estimation techniques are employed. Looking at the experience of individual countries, there is evidence of a bank lending channel in all countries, though the strength of it varies across countries. Bank size and liquidity seem to play the most significant role in distinguishing banks' reactions to changes in monetary policy. We also investigate the macroeconomic consequences of the bank lending channel and find evidence connecting aggregate loan supply to real economic activity in the CEE countries. Journal of Comparative Economics 37 (2) (2009) 321-334.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 37 (2009) Issue (Month): 2 (June) Pages: 321-334 Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF