The bank lending channel in an euroised economy: the case of Serbia
AbstractThis paper investigates the bank lending channel of monetary transmission in Serbia. We collect individual bank balance sheet data for 33 banks over the period 2008Q3-2011Q2 and employ dynamic panel estimation techniques. Two different bank loan supply functions are investigated according to the currency denomination of bank loans in Serbia. Our findings indicate that there is a significant bank lending channel through the domestic and foreign reference interest rates in the growth of domestic currency loans. In the case of foreign currency loans, there is no statistical evidence for the existence of a bank lending channel which may be related to the prevalence of long-term loans in total foreign currency loans and relatively short sample size.
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Bibliographic InfoPaper provided by National Bank of Serbia in its series Working papers with number 24.
Length: 23 pages
Date of creation: Jul 2012
Date of revision:
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Postal: National Bank of Serbia, 12 Kralja Petra St, 11 000 Belgrade, Republic of Serbia
Web page: http://www.nbs.rs
More information through EDIRC
bank lending channel; Serbia; euroised economy; small-size dynamic panel estimation;
Find related papers by JEL classification:
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
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