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The bank lending channel in an euroised economy: the case of Serbia

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  • Srdjan Kujundzic

    (National Bank of Serbia)

  • Dragiša Otaševic

    (National Bank of Serbia)

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    Abstract

    This 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 Info

    Paper provided by National Bank of Serbia in its series Working papers with number 24.

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    Length: 23 pages
    Date of creation: Jul 2012
    Date of revision:
    Handle: RePEc:nsb:wpaper:24

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    Postal: National Bank of Serbia, 12 Kralja Petra St, 11 000 Belgrade, Republic of Serbia
    Phone: 381-11/3248-841
    Fax: 381-11/3234-120
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    Web page: http://www.nbs.rs
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    Related research

    Keywords: bank lending channel; Serbia; euroised economy; small-size dynamic panel estimation;

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    References

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