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The Central Bank and bank credits in the Philippines : a survey on effectiveness of monetary policy and its measures

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  • Kashiwabara, Chie

Abstract

In the post-Asian crisis period, bank loans to the manufacturing sector have shown a slow recovery in the affected countries, unexceptionally in the Philippines. This paper provides a literacy survey on the effectiveness of the Central Bank’s monetary policy and the responsiveness of the financial market, and discusses on the future works necessary to better understand the monetary policy effectiveness in the Philippines.As the survey shows, most previous works focus on the correlation between the short-term policy rates and during the period of monetary tightening and relatively less interest in quantitative effectiveness. Future tasks would shed lights on (1) the asset side – other than loan outstanding – of banks to analyze their behavior/preference in structuring portfolios, and (2) the quantitative impacts during the monetary easing period.

Suggested Citation

  • Kashiwabara, Chie, 2013. "The Central Bank and bank credits in the Philippines : a survey on effectiveness of monetary policy and its measures," IDE Discussion Papers 413, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper413
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    References listed on IDEAS

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    4. Yu Hsing, 2004. "Monetary, fiscal and exchange rate policies and Philippine output : an application of IS-MP-AS model," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 41(1), pages 45-55, June.
    5. Ben S. Bernanke & Mark Gertler, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 27-48, Fall.
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    7. Frederic S. Mishkin, 1996. "The Channels of Monetary Transmission: Lessons for Monetary Policy," NBER Working Papers 5464, National Bureau of Economic Research, Inc.
    8. Santos José O. Dacanay III, 2010. "The evolution of cost and profit efficiency of Philippine commercial banks," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 47(1), pages 109-146, June.
    9. Frederic S. Mishkin & Adam S. Posen, 1997. "Inflation targeting: lessons from four countries," Economic Policy Review, Federal Reserve Bank of New York, vol. 3(Aug), pages 9-110.
    10. Rj Angeles & Margot Aissa Tan, 2007. "The contribution of the output gap to the conduct of inflation targeting in the Philippines," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 44(1), pages 99-123, June.
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    12. Mr. Tamim Bayoumi & Ola Melander, 2008. "Credit Matters: Empirical Evidence on U.S. Macro-Financial Linkages," IMF Working Papers 2008/169, International Monetary Fund.
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    Cited by:

    1. Jean Christine A. Armas, 2021. "Is the Bank Lending Channel of Monetary Policy Evident in the Philippines? A Dynamic Panel Data Approach," Asian Economic Journal, East Asian Economic Association, vol. 35(3), pages 246-269, September.

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    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Systems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation

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