Romanian Interbank Interest Rates and Central Bank’s Monetary Policy
Interbank rates are affected by the monetary policy of a country and represent a link to other financial and credit markets. In 2007, Romania became a member of the European Union and its central bank, the National Bank of Romania (NBR), joined the European System of Central Banks (ESCB) but not the...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house
2019-12-01
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| Series: | Scientific Annals of Economics and Business |
| Subjects: | |
| Online Access: | http://saeb.feaa.uaic.ro/index.php/saeb/article/view/992 |
| _version_ | 1818426993716232192 |
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| author | Giovanni Verga Nicoleta Vasilcovschi |
| author_facet | Giovanni Verga Nicoleta Vasilcovschi |
| author_sort | Giovanni Verga |
| collection | DOAJ |
| description | Interbank rates are affected by the monetary policy of a country and represent a link to other financial and credit markets. In 2007, Romania became a member of the European Union and its central bank, the National Bank of Romania (NBR), joined the European System of Central Banks (ESCB) but not the Eurosystem. This paper analyses the role of the central bank and the use of its instruments concerning interbank rates. The research evaluates the influence of the Romanian Central Bank on interbank rates and shows that the policy rate and bank liquidity are among the main determinants of interbank rate movements. It is also presented that the NBR’s deposit and lending rates can limit the free movements of the interbank rate of interest. This research confirms that interbank interest rates influence bank rates strongly. The methodology used in this research includes cointegration, dynamic econometric measurement and analyses with Granger causality. Our research uses mainly ROBID and ROBOR of different maturities, showing that the influence of the Romanian Central Bank (NBR) on the interbank rate is strong, while the influence of the ECB and Fed is weak. |
| first_indexed | 2024-12-14T14:38:40Z |
| format | Article |
| id | doaj.art-f0ac25278951487a99639c0373df7ba6 |
| institution | Directory Open Access Journal |
| issn | 2501-3165 2501-3165 |
| language | English |
| last_indexed | 2024-12-14T14:38:40Z |
| publishDate | 2019-12-01 |
| publisher | Editura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing house |
| record_format | Article |
| series | Scientific Annals of Economics and Business |
| spelling | doaj.art-f0ac25278951487a99639c0373df7ba62022-12-21T22:57:29ZengEditura Universităţii „Alexandru Ioan Cuza” din Iaşi / Alexandru Ioan Cuza University of Iasi Publishing houseScientific Annals of Economics and Business2501-31652501-31652019-12-0166448750610.2478/saeb-2019-0042151Romanian Interbank Interest Rates and Central Bank’s Monetary PolicyGiovanni Verga0Nicoleta Vasilcovschi1University of Parma and European College FoundationSino-Canadian International Program, ShandongInterbank rates are affected by the monetary policy of a country and represent a link to other financial and credit markets. In 2007, Romania became a member of the European Union and its central bank, the National Bank of Romania (NBR), joined the European System of Central Banks (ESCB) but not the Eurosystem. This paper analyses the role of the central bank and the use of its instruments concerning interbank rates. The research evaluates the influence of the Romanian Central Bank on interbank rates and shows that the policy rate and bank liquidity are among the main determinants of interbank rate movements. It is also presented that the NBR’s deposit and lending rates can limit the free movements of the interbank rate of interest. This research confirms that interbank interest rates influence bank rates strongly. The methodology used in this research includes cointegration, dynamic econometric measurement and analyses with Granger causality. Our research uses mainly ROBID and ROBOR of different maturities, showing that the influence of the Romanian Central Bank (NBR) on the interbank rate is strong, while the influence of the ECB and Fed is weak.http://saeb.feaa.uaic.ro/index.php/saeb/article/view/992interbank interest rates, romanian central bank (nbr), liquidity, bank interest rates, european central bank (ecb), fed, eurozone, robor and robid. |
| spellingShingle | Giovanni Verga Nicoleta Vasilcovschi Romanian Interbank Interest Rates and Central Bank’s Monetary Policy Scientific Annals of Economics and Business interbank interest rates, romanian central bank (nbr), liquidity, bank interest rates, european central bank (ecb), fed, eurozone, robor and robid. |
| title | Romanian Interbank Interest Rates and Central Bank’s Monetary Policy |
| title_full | Romanian Interbank Interest Rates and Central Bank’s Monetary Policy |
| title_fullStr | Romanian Interbank Interest Rates and Central Bank’s Monetary Policy |
| title_full_unstemmed | Romanian Interbank Interest Rates and Central Bank’s Monetary Policy |
| title_short | Romanian Interbank Interest Rates and Central Bank’s Monetary Policy |
| title_sort | romanian interbank interest rates and central bank s monetary policy |
| topic | interbank interest rates, romanian central bank (nbr), liquidity, bank interest rates, european central bank (ecb), fed, eurozone, robor and robid. |
| url | http://saeb.feaa.uaic.ro/index.php/saeb/article/view/992 |
| work_keys_str_mv | AT giovanniverga romanianinterbankinterestratesandcentralbanksmonetarypolicy AT nicoletavasilcovschi romanianinterbankinterestratesandcentralbanksmonetarypolicy |