TEST OF THE BANK LENDING CHANNEL FOR A BRICS COUNTRY
Journal Title: Asian Economic and Financial Review - Year 2014, Vol 4, Issue 8
Abstract
Based on a simultaneous-equation model of loan demand and loan supply and applying the three-stage least squares method, this paper finds that loan demand is negatively affected by the lending rate and positively associated with manufacturing production and the inflation rate and that loan supply is positively influenced by the lending rate, bank deposits, and the nominal effective exchange rate and negatively affected by the government bond yield and the policy rate. The bank lending channel is confirmed for South Africa as expansionary monetary policy such as a lower policy rate or open market purchases of government bonds would reduce the cost of borrowing by banks and increase bank deposits/reserves.
Authors and Affiliations
Yu Hsing| Southeastern Louisiana University, Wen-jen Hsieh| National Cheng Kung University
Keywords
Related Articles
- EP ID EP2061
- DOI -
- Views 442
- Downloads 30
THE TAIWANESE BUSINESSMEN ASSESS THE INVESTMENT ENVIRONMENT OF CHINA – CONSTRUCTION AND APPLICATION OF PR AHP PROGRAM
The economy of China has been rapidly growing in recent years. One of the important reasons is that there are a large number of foreign capital investments made in China. Creating a good investment environment in order t...
EXCHANGE RATE FLUCTUATIONS AND MACROECONOMIC PERFORMANCE IN SUB-SAHARAN AFRICA: A DYNAMIC PANEL COINTEGRATION ANALYSIS
In the light of the widespread effects of the recent global financial crisis on exchange rate and other macroeconomic developments, this paper investigates the implications of exchange rate fluctuations on output and oth...
LIQUIDITY AND RETURNS: EVIDENCES FROM STOCK INDEXES AROUND THE WORLD
Using data from 16 developing countries and 10 developed countries between January 2000 and December 2013, this study examines the relationship between liquidity and stock index return. The empirical results show that th...
GENDER DIFFERENCE EFFECTS ON CONTRIBUTING FACTORS OF INTENTION TO BE INVOLVED IN KNOWLEDGE CREATION AND SHARING
The paper analyses the moderating effects of demographics factors of organizational members on the contributing factors of intention to be involved in Knowledge Management (KM) process; knowledge creation and knowledge s...
EFFECT OF DISAGREEMENT ON CORPORATE FINANCING POLICY AND INVESTMENT LEVEL
This study models firm?s financing policy and investment level when manager and outside investors has disagreement. It shows that the firm is more likely to over invest when the level of disagreement is high, and prefers...