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The role of banks in the monetary policy transmission in the new EU member states

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  • Jimborean, Ramona

Abstract

This paper aims to enrich the knowledge on the monetary policy transmission mechanism in the new European Union member states with empirical evidence on the impact of monetary policy on bank lending. This work is based on individual bank balance sheet data and covers a sample of commercial banks from 10 Central and Eastern European countries over the period 1998-2006. We follow the approach suggested by Kashyap and Stein (1995) and control for cross-section heterogeneities among banks. The results indicate the existence of asymmetric adjustment of loan quantities with respect to specific bank characteristics. Our findings indicate the existence of a functioning bank-lending channel through small banks. This applies in the short-run to several, but not all, of the analysed banks.

Suggested Citation

  • Jimborean, Ramona, 2009. "The role of banks in the monetary policy transmission in the new EU member states," Economic Systems, Elsevier, vol. 33(4), pages 360-375, December.
  • Handle: RePEc:eee:ecosys:v:33:y:2009:i:4:p:360-375
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    Cited by:

    1. repec:voj:journl:v:63:y:2016:i:3:p:325-338 is not listed on IDEAS
    2. Daniel C. Hickman & William W. Olney, 2011. "Globalization and Investment in Human Capital," ILR Review, Cornell University, ILR School, vol. 64(4), pages 654-672, July.
    3. Kiril Tochkov & Nikolay Nenovsky, 2011. "Institutional Reforms, EU Accession, and Bank Efficiency in Transition Economies: Evidence from Bulgaria," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 47(1), pages 113-129, January.
    4. Yang, Jun & Shao, Hanhua, 2016. "Impact of bank competition on the bank lending channel of monetary transmission: Evidence from China," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 468-481.
    5. Peter J Montiel & Antonio Spilimbergo & Prachi Mishra, 2010. "Monetary Transmission in Low Income Countries," IMF Working Papers 10/223, International Monetary Fund.
    6. Talavera, Oleksandr & Tsapin, Andriy & Zholud, Oleksandr, 2012. "Macroeconomic uncertainty and bank lending: The case of Ukraine," Economic Systems, Elsevier, vol. 36(2), pages 279-293.
    7. Cantero-Saiz, Maria & Sanfilippo-Azofra, Sergio & Torre-Olmo, Begoña & López-Gutiérrez, Carlos, 2014. "Sovereign risk and the bank lending channel in Europe," Journal of International Money and Finance, Elsevier, vol. 47(C), pages 1-20.
    8. Srdjan Kujundzic & Dragiša Otaševic, 2012. "The bank lending channel in an euroised economy: the case of Serbia," Working papers 24, National Bank of Serbia.
    9. repec:eee:finlet:v:24:y:2018:i:c:p:95-104 is not listed on IDEAS
    10. Nguyen, Vu Hong Thai & Boateng, Agyenim, 2013. "The impact of excess reserves beyond precautionary levels on Bank Lending Channels in China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 26(C), pages 358-377.

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