Evidence of bank lending channel in Malaysia
The aim of this paper is to analyse the role of banks in the transmission of monetary policy and business cycle. This paper attempts to look into the assets side as a monetary policy channel to influence economic activities. Changes in the monetary policy channel give an idea to regulate and strengt...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2008
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| Online Access: | https://repo.uum.edu.my/id/eprint/593/1/Fathin_Faizah_Said.pdf |
| _version_ | 1803624155798568960 |
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| author | Said, Fathin Faizah Ismail, Abdul Ghafar |
| author_facet | Said, Fathin Faizah Ismail, Abdul Ghafar |
| author_sort | Said, Fathin Faizah |
| collection | UUM |
| description | The aim of this paper is to analyse the role of banks in the transmission of monetary policy and business cycle. This paper attempts to look into the assets side as a monetary policy channel to influence economic activities. Changes in the monetary policy channel give an idea to regulate and strengthen the banking industry. The different views raise the following questions: how do changes in the monetary policy transmission affect commercial banks
portfolio? If bank lending plays as a monetary policy channel, does it affect the other portfolios? Do the current regulations (such as capital requirement)affect the bank portfolio behaviour? Furthermore, Generalise Least Squares method was used to estimate the monetary changes toward commercial banks portfolio. Annual data was compiled from the year 1994 until 2004. The number of observations was based on the combination of time series and cross-sectional data, which is known as pooled data. In addition, an unbalanced bank-level panel data set for commercial banks was used. Finally, our results found that there exists a bank-lending channel in the case of Malaysia. |
| first_indexed | 2024-07-04T05:13:53Z |
| format | Article |
| id | uum-593 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:13:53Z |
| publishDate | 2008 |
| publisher | Universiti Utara Malaysia |
| record_format | dspace |
| spelling | uum-5932010-09-29T04:40:27Z https://repo.uum.edu.my/id/eprint/593/ Evidence of bank lending channel in Malaysia Said, Fathin Faizah Ismail, Abdul Ghafar HG Finance The aim of this paper is to analyse the role of banks in the transmission of monetary policy and business cycle. This paper attempts to look into the assets side as a monetary policy channel to influence economic activities. Changes in the monetary policy channel give an idea to regulate and strengthen the banking industry. The different views raise the following questions: how do changes in the monetary policy transmission affect commercial banks portfolio? If bank lending plays as a monetary policy channel, does it affect the other portfolios? Do the current regulations (such as capital requirement)affect the bank portfolio behaviour? Furthermore, Generalise Least Squares method was used to estimate the monetary changes toward commercial banks portfolio. Annual data was compiled from the year 1994 until 2004. The number of observations was based on the combination of time series and cross-sectional data, which is known as pooled data. In addition, an unbalanced bank-level panel data set for commercial banks was used. Finally, our results found that there exists a bank-lending channel in the case of Malaysia. Universiti Utara Malaysia 2008 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/593/1/Fathin_Faizah_Said.pdf Said, Fathin Faizah and Ismail, Abdul Ghafar (2008) Evidence of bank lending channel in Malaysia. International Journal of Management Studies (IJMS), 15 (1). pp. 43-69. ISSN 0127-8983 http://ijms.uum.edu.my |
| spellingShingle | HG Finance Said, Fathin Faizah Ismail, Abdul Ghafar Evidence of bank lending channel in Malaysia |
| title | Evidence of bank lending channel in Malaysia |
| title_full | Evidence of bank lending channel in Malaysia |
| title_fullStr | Evidence of bank lending channel in Malaysia |
| title_full_unstemmed | Evidence of bank lending channel in Malaysia |
| title_short | Evidence of bank lending channel in Malaysia |
| title_sort | evidence of bank lending channel in malaysia |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/593/1/Fathin_Faizah_Said.pdf |
| work_keys_str_mv | AT saidfathinfaizah evidenceofbanklendingchannelinmalaysia AT ismailabdulghafar evidenceofbanklendingchannelinmalaysia |