The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis
Asymmetries in the Vietnamese lending central bank’s policy-related rate spread were documented. Empirical results revealed that the spread adjusts to the threshold faster when the central bank’s policy-related rates decrease relative to the lending rates than when the central bank’s policy-related...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2015-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | http://dx.doi.org/10.1080/23322039.2015.1007808 |
| _version_ | 1818700813196853248 |
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| author | Chu V. Nguyen |
| author_facet | Chu V. Nguyen |
| author_sort | Chu V. Nguyen |
| collection | DOAJ |
| description | Asymmetries in the Vietnamese lending central bank’s policy-related rate spread were documented. Empirical results revealed that the spread adjusts to the threshold faster when the central bank’s policy-related rates decrease relative to the lending rates than when the central bank’s policy-related rates move in the opposite direction. Additionally, the empirical findings indicate that Vietnamese commercial banks exhibit competitive rate setting behavior which may be attributable to graft maximization by bank’s management. The results also show bidirectional Granger causality between the Vietnamese lending rate and the central bank’s policy-related rate, indicating that the lending rate and the central bank’s policy-related rate affect each other’s movements. These results suggest that monetary authority can use its countercyclical monetary policy instruments to achieve its macroeconomics objectives. However, the estimation results of the GARCH (2, 3)-in-Mean model suggest that they should intervene more frequently and by small policy measures to minimize the conditional variance of the spread to minimize the magnitude of the cycle of the lending rate. |
| first_indexed | 2024-12-17T15:10:54Z |
| format | Article |
| id | doaj.art-b4e1267be46d4f44937d37c7ac505359 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-12-17T15:10:54Z |
| publishDate | 2015-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-b4e1267be46d4f44937d37c7ac5053592022-12-21T21:43:40ZengTaylor & Francis GroupCogent Economics & Finance2332-20392015-12-013110.1080/23322039.2015.10078081007808The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisisChu V. Nguyen0University of Houston-DowntownAsymmetries in the Vietnamese lending central bank’s policy-related rate spread were documented. Empirical results revealed that the spread adjusts to the threshold faster when the central bank’s policy-related rates decrease relative to the lending rates than when the central bank’s policy-related rates move in the opposite direction. Additionally, the empirical findings indicate that Vietnamese commercial banks exhibit competitive rate setting behavior which may be attributable to graft maximization by bank’s management. The results also show bidirectional Granger causality between the Vietnamese lending rate and the central bank’s policy-related rate, indicating that the lending rate and the central bank’s policy-related rate affect each other’s movements. These results suggest that monetary authority can use its countercyclical monetary policy instruments to achieve its macroeconomics objectives. However, the estimation results of the GARCH (2, 3)-in-Mean model suggest that they should intervene more frequently and by small policy measures to minimize the conditional variance of the spread to minimize the magnitude of the cycle of the lending rate.http://dx.doi.org/10.1080/23322039.2015.1007808asymmetrylending ratecentral bank’s policy-related rateintermediation premiumVietnampredatory pricing behaviorGranger causalitycountercyclical monetary policy |
| spellingShingle | Chu V. Nguyen The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis Cogent Economics & Finance asymmetry lending rate central bank’s policy-related rate intermediation premium Vietnam predatory pricing behavior Granger causality countercyclical monetary policy |
| title | The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis |
| title_full | The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis |
| title_fullStr | The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis |
| title_full_unstemmed | The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis |
| title_short | The Vietnamese lending rate, policy-related rate, and monetary policy post-1997 Asian financial crisis |
| title_sort | vietnamese lending rate policy related rate and monetary policy post 1997 asian financial crisis |
| topic | asymmetry lending rate central bank’s policy-related rate intermediation premium Vietnam predatory pricing behavior Granger causality countercyclical monetary policy |
| url | http://dx.doi.org/10.1080/23322039.2015.1007808 |
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