Supervisory Forward Guidance: The Effectiveness of the 2020 Supervisory Capital Relief on the Bank Credit Supply Channel

2021 ◽  
Author(s):  
Silviu Oprica ◽  
Claudia Schwarz
Keyword(s):  
Bank Credit ◽  
Credit Supply ◽  
Forward Guidance ◽  
Supply Channel

scholarly journals DISINTERMEDIASI FUNGSI PERBANKAN DI INDONESIA PASCA KRISIS 1997 : Faktor Permintaan Atau Penawaran Kredit, Sebuah Pendekatan Dengan Model Disequilibrium

2007 ◽  
Vol 8 (1) ◽  
pp. 51-78
Author(s):  
Harmanta Harmanta ◽  
Dr. Mahyus Ekananda
Keyword(s):  
Maximum Likelihood ◽  
Interest Rate ◽  
Likelihood Estimation ◽  
Credit Market ◽  
New Keynesian ◽  
Bank Credit ◽  
Credit Crunch ◽  
Switching Regression ◽  
Credit Supply ◽  
Credit Demand

The goal of this paper is to analyze the determinants of bank credit declining, whether is dominated by the supply or the credit demand, post the financial crisis in Indonesia. This paper is a sort of New Keynesian approach, which pre assume the imperfectness of the credit market and hence create disequilibrium.Using the switching regression model and Maximum Likelihood Estimation to determine the probability of supply or demand determination, the result shows the existence of excess demand of credit during the crisis period, 1997/ 1998, confirming the credit crunch situation. After the crisis, the condition is reversed, where the credit supply is higher than the credit demand. The two findings implicitely shows the inflexibility of interest rate to equalize the credit market.JEL: D43, D82, E44, E51Keywords : Disintermediasi, kredit, disequilibrium, maximum likelihood, persamaan simultan, switching regression

scholarly journals THE CREDIT SUPPLY CHANNEL OF MONETARY POLICY TRANSMISSION MECHANISM: AN EMPIRICAL INVESTIGATION OF ISLAMIC BANKS IN PAKISTAN VERSUS MALAYSIA

2019 ◽  
Vol 5 (1) ◽  
Author(s):  
Syed Muhammad Abdul Rehman Shah
Keyword(s):  
Monetary Policy ◽  
Balance Sheet ◽  
Banking System ◽  
Real Income ◽  
Transmission Mechanism ◽  
Islamic Banks ◽  
Differential Impact ◽  
Credit Supply ◽  
Balance Sheet Channel ◽  
Supply Channel

The transmission mechanism of monetary policy is explained through the relationshipsbetween a change in money supply and the level of real income. Monetary policytransmits to the real sector through several different channels. Such channels includethe interest rate channel, the exchange rate channel, the asset-pricing channel, the creditsupply channel, and the bank balance sheet channel. This paper empirically investigatesthe credit supply channel of monetary policy and explores the differential impact ofmonetary policy on credit supply of Islamic banks in Pakistan versus Malaysia. Therobust two-step System-Generalize Method of Moments (GMM) estimator is appliedon an unbalanced panel dataset over the period 2005-2016. While estimating the effectsof three alternative measures of monetary policy on banks’ credit supply, several bankspecificvariables are included in the specification as control variables. We providestrong evidence on the existence of credit supply channel in the baseline models forboth countries and differential impact of monetary policy through Islamic banks inPakistan versus Malaysia in the extended models. Our findings suggest that there isa vital need to consider the nature of Islamic banks while devising the instrumentsof an effective monetary policy in countries with dual banking system like Pakistan,Malaysia, Indonesia, Bahrain, Saudi Arabia, Qatar and others.

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