The Impact of the Credit Channel on Macroeconomic Variables and Bank Characteristics in the Brazilian Economy from 2009 to 2018

This article uses commercial bank-level data to examine a credit channel of the monetary policy transmission mechanism in the Brazilian economy from BRICS countries. Static panel data with a fixed-effect model are used for data analysis. Using a sample of 212 commercial banks from 2009 to 2018. According to the findings of this study, there is a significant and positive relationship between macroeconomic variables that affect the interest rate and GDP with the loan amount, but not with the inflation rate. Also, it is reasonable to conclude that banks in Brazil react to monetary policy in a variety of ways.

The Role of Monetary Policy in Activating the Bank Credit Channel: Iraq Case Study

The main objective of the research is to find out how monetary policy has influenced the support and promotion of bank credit to promote the economy by creating jobs and addressing unemployment, where the central bank after2003 played a leading and active role in supporting commercial banks and promoting bank credit ‘One of the central bank's important objectives is to stabilize the overall level of prices set out in law No 56 For the year ( ( 2004 Article (3) The Central Bank of Iraq has used the policy of stability in the exchange rate of the dinar as a key tool in stabilizing prices in Iraq through the window of selling foreign currency.

Die Auswirkungen der Coronapandemie auf die finanzielle Lage unterschiedlicher Gruppen von mittelständischen Unternehmen und deren Folgen für den Kreditzugang

Die Coronapandemie hat sichtbare Spuren bei der Liquiditätssituation und den Eigenkapitalquoten mittelständischer Unternehmen hinterlassen. Vor dem Hintergrund einer guten Ausgangslage und insgesamt einer Stabilisierung der Lage im Krisenverlauf ist eine Überschuldung des Unternehmenssektors in der Breite jedoch unwahrscheinlich. Die Auswirkungen betreffen den gesamten Mittelstand jedoch nicht einheitlich, sondern treten verstärkt in einzelnen Segmenten auf, vor allem bei kleinen Unternehmen, in bestimmten Wirtschaftszweigen, auslandsaktiven Unternehmen und Unternehmen mit schon vor Corona schwächerer Bonität. Dies belastet das Kreditklima: Die Risikosensitivität von Kreditinstituten nimmt zu. Die von der Coronakrise betroffenen Unternehmenssegmente sehen sich häufiger höheren Anforderungen bei den Kreditsicherheiten sowie Zinserhöhungen gegenüber, wenn auch insgesamt der Kreditkanal während der Krise bisher aufgrund von Geld- und Fiskalpolitischen Maßnahmen offen geblieben ist, einen Beitrag zur Stabilisierung geleistet hat, und diese Effekte weniger stark als in der Finanzkrise 2008/09 sind. The Corona pandemic has left visible traces on the liquidity situation and equity ratios of medium-sized companies. Against the background of a good starting position and an overall stabilisation of the situation in the course of the crisis, over-indebtedness of the corporate sector across the board is unlikely. However, the effects do not affect the entire SME sector uniformly, but occur more strongly in specific segments, especially among small companies, in certain economic sectors, foreign-active companies and companies that already had a weaker credit rating before Corona. This weighs on the credit climate: the risk sensitivity of credit institutions is increasing. The company segments affected by the Corona crisis are more frequently faced with higher requirements for loan collateral as well as interest rate increases, even if overall the credit channel has remained open during the crisis so far due to monetary and fiscal policy measures, has made a contribution to stabilisation, and these effects are less strong than in the financial crisis of 2008/09.

Bank competition and the credit channel of monetary policy: Evidence from an emerging country

Our study provides one of the first examinations in an emerging country on the credit channel of monetary policy transmission under the influence of competition. The study was conducted using a panel data of 30 joint-stock commercial banks in Vietnam in the period of 2008-2017. By applying the DGMM estimation method, we found that the existence of the influence of competition on monetary policy transmission through credit channels. The higher bank competitiveness will make monetary policy transmission via credit channels of commercial banks less effective. Large-scale commercial banks, because of a merger or equity increase, will increase their competitiveness because of increased market share, which will weaken the monetary policy transmission through credit channels. The estimation results from the two methods of competitiveness measurement-the Lerner index and the Boone index–are in a united direction but at different levels.

Creditor rights, monetary policy, financial crisis, and trade credit

This article analyses how creditor rights affect the trade credit channel of monetary policy. We also aim to test whether these effects were conditioned by the global financial crisis of 2008. Using a sample of 15,356 firms from 29 countries (2001–2017), we found that in normal times or in countries not very severely affected by the financial crisis, trade credit receivables increase during monetary restrictions. Moreover, this increase is less pronounced as creditor protection strengthens. In countries strongly affected by the financial crisis, however, trade credit receivables do not react or even decrease after monetary expansions, regardless of the degree of creditor protection. Furthermore, the results of trade credit payables and net trade credit are not conclusive. JEL CLASSIFICATION: E52; K22; G32

ROLE OF THE CREDIT CHANNEL IN THE MECHANISM OF MONETARY TRANSMISSION IN UKRAINE

The article provides a comprehensive analysis of the functioning of the credit channel of the monetary transmission mechanism in Ukraine in 2005–2020, defines its role, the main tasks and features of its use in the system of modern monetary regulation of the economy. It has been substantiated that the main task of managing the credit channel of the transmission mechanism is to increase the efficiency of monetary regulation by transferring monetary impulses from the central bank to the real sector of the economy in order to ensure economic growth. Criteria are determined, basic indicators are proposed and methods for assessing the effectiveness of the functioning of the credit channel of monetary transmission are improved. As a result of calculations, it was proved that in 2005–2020 in Ukraine, the credit channel of the monetary transmission mechanism had a positive effect on the growth rate of the monetary aggregate M3 and the growth rate of the real gross domestic product, while the increase in government bond yields and the share of non-performing loans had a negative impact on lending activity and the rate of lending to the economy. The main reasons for the low efficiency of using the credit channel were the deterioration of the financial condition of enterprises and households, a decrease in their creditworthiness, low demand for investment resources, a high proportion of non-performing loans, significant volumes of government bonds issued by the government and high credit risks, which made it difficult for the central bank to adopt effective decisions and constrained economic growth. The main directions of improving the management and increasing the efficiency of the functioning of the credit channel of monetary transmission in Ukraine on the basis of improving the credit and investment climate, improving the methodology for assessing credit risks, increasing the efficiency of monetary regulation and the implementation by the central bank of a monetary policy adequate to economic conditions have been identified. The forecast parameters and conditions for the effective functioning of the credit channel of the monetary transmission mechanism in Ukraine in the medium and long term are proposed.