IDEAS home Printed from https://ideas.repec.org/a/eut/journl/v23y2019i1p163.html
   My bibliography  Save this article

The Interactions between the Lending Rates, Deposit Rates and Money Market Rates

Author

Listed:
  • Manel Mansour1, *2, 3, 4

    (University of Sousse, Susah, Tunisia.)

  • Asma Sghaier

    (LaMIDED, University of Sousse, Susah, Tunisia.)

  • Boutheina Banour

    (University of Sousse, Susah, Tunisia.)

  • Sami Ben Jabeur

    (IPAG Business School, Paris, France.)

Abstract

The present paper investigates the impact of the financial crisis on the interaction between the lending rates, deposit rates and money market rates through the process of retail bank interest rate pass-through in the countries of the Euro area. Among our findings is the heterogeneity of bank rate adjustments across sectors, loans and deposits. That was mainly marked during the pre-crisis period by a complete or high long-term pass-through for deposit rates and incomplete for lending rates. However, in the post-crisis period, the degree of pass-through dropped for all bank rates. In addition, we see that the bank rates have become more rigid due to market turbulence since the speed of adjustment towards equilibrium slowed down significantly. Finally, the results show that there is an interdependence of banks' decisions on lending rates as well as deposit rates. It is thus a valuable input in the transmission mechanism of monetary policy.

Suggested Citation

  • Manel Mansour1, *2, 3, 4 & Asma Sghaier & Boutheina Banour & Sami Ben Jabeur, 2019. "The Interactions between the Lending Rates, Deposit Rates and Money Market Rates," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 23(1), pages 163-189, Winter.
    • Handle: RePEc:eut:journl:v:23:y:2019:i:1:p:163
    as

    Download full text from publisher

    File URL: ftp://80.66.179.253/eut/journl/20191-9.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eut:journl:v:23:y:2019:i:1:p:163. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: [z.rahimalipour] (email available below). General contact details of provider: https://edirc.repec.org/data/fecutir.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.