The Role of Bank Balance Sheets in Monetary Policy Transmission. Evidence from Poland

2016 ◽  
Author(s):  
Mariusz Kapuuciiski
Keyword(s):  
Monetary Policy ◽  
Monetary Policy Transmission ◽  
Balance Sheets ◽  
Policy Transmission ◽  
Bank Balance Sheets

Sukuk and monetary policy transmission in Indonesia: the role of asset price and exchange rate channels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suriani Suriani ◽  
M. Shabri Abd. Majid ◽  
Raja Masbar ◽  
Nazaruddin A. Wahid ◽  
Abdul Ghafar Ismail
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rates ◽  
Asset Price ◽  
Transmission Mechanism ◽  
Monetary Policy Transmission ◽  
Content Type ◽  
Policy Transmission ◽  
Monetary Policy Transmission Mechanism

Purpose The purpose of this study is to empirically analyze the role of sukuk in the monetary policy transmission mechanism through the asset price and exchange rate channels in the Indonesian economy. Design/methodology/approach Using the monthly data from January 2003 to November 2017, this study uses a multivariate vector error correction model causality framework. To examine the role of sukuk in the monetary policy transmission mechanism through the asset price channel, this study uses the variables of consumption, inflation, interest rates, economic growth and the composite stock price index. Meanwhile, to examine the role of sukuk in the monetary policy transmission mechanism through the exchange rate channel, this study used variables of inflation, interest rates, economic growth, foreign investment and exchange rate. Findings This study documented that sukuk has no causal relationship with inflation through asset price and exchange rate channels. Nevertheless, sukuk has a bidirectional causal relationship with economic growth through asset price and exchange rate channels. Sukuk is also documented to have a causal relationship with monetary policy variables of interest rate and stock prices through asset price and exchange rate channels. Finally, a unidirectional causality is recorded running from the exchange rate to sukuk in the exchange rate channel. Research limitations/implications The finding of independence of the sukuk market from interest rates provides evidence that the trading of the sukuk in Indonesia has been in harmony with the Islamic tenets. Practical implications The relevant Indonesian authorities need to enhance both domestic and global sukuk markets as part of efforts to promote the sustainability of Islamic capital market development in Indonesia. Originality/value To the best of the authors’ knowledge, this study is among the first attempts to empirically investigate the role of sukuk in monetary policy transmission through asset price and exchange rate channels in the context of the Indonesian economy.

The SOE Channel of Monetary Policy Transmission: Evidence from China's Economic Stimulus Package

2021 ◽  
pp. 1-21
Author(s):  
Wenbin Chen ◽  
Shi-Zhuan Han ◽  
Jie Li ◽  
Tianhang Zhou
Keyword(s):  
Monetary Policy ◽  
Propensity Score ◽  
Propensity Score Matching ◽  
Bank Loans ◽  
Monetary Policy Transmission ◽  
Difference In Difference ◽  
Policy Transmission ◽  
High Level ◽  
Stimulus Package

Abstract We examine the state-owned enterprises (SOEs) channel in monetary policy transmission in the context of China's 2008 stimulus package. Using a difference-in-difference approach, we show that the higher SOE share in the cities after the stimulus package, the more bank loans issued in the cities. Furthermore, we find that the role of SOEs in monetary policy transmission is more significant in underdeveloped cities and cities with a high level of government intervention. We adopt propensity score matching difference-in-difference to deal with potential endogeneity problem. The baseline results also survive a series of robustness tests.

scholarly journals Financial Systems and the Role of Banks in Monetary Policy Transmission in the Euro Area

2001 ◽  
Author(s):  
Michael Ehrmann ◽  
Leonardo Gambacorta ◽  
Jorge Martínez Pagés ◽  
Patrick Sevestre ◽  
Andreas Worms
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Monetary Policy Transmission ◽  
Financial Systems ◽  
Policy Transmission
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