HERYÁN, Tomáš and Panayiotis TZEREMES. The bank lending channel of monetary policy in EU countries during the global financial crisis. Economic Modelling. 2017, Neuveden, No 67, p. 10-22. ISSN 0264-9993.
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Basic information
Original name The bank lending channel of monetary policy in EU countries during the global financial crisis
Authors HERYÁN, Tomáš (203 Czech Republic, belonging to the institution) and Panayiotis TZEREMES (300 Greece).
Edition Economic Modelling, 2017, 0264-9993.
Other information
Original language English
Type of outcome Article in a journal
Field of Study 50202 Applied Economics, Econometrics
Country of publisher United Kingdom of Great Britain and Northern Ireland
Confidentiality degree is not subject to a state or trade secret
WWW URL
RIV identification code RIV/47813059:19520/17:00010542
Organization unit School of Business Administration in Karvina
UT WoS 000416616700002
Keywords in English Lending channel; Transmission mechanism; Crisis times; Old EMU and new EU countries
Links GA13-03783S, research and development project.
Changed by Changed by: RNDr. Daniel Jakubík, učo 139797. Changed: 7/2/2020 11:00.
Abstract
The study examines the existence of the bank lending channel of monetary policy in European Union (EU) countries. The paper advances current research on the monetary transmission mechanism in the following ways: Firstly, we analyze the differences between 'old' Economic Monetary Union (EMU) and 'new' EU countries. Secondly, we examine the key bank characteristics and monetary policy indicators that may have an impact on the bank lending channel. We assume that short-term market interest rates and monetary aggregate M2 affect banks' activities. We apply the generalized method of moments (GMM) with pooled data from 1999 to 2012. We show that in the pre-crisis period the effect of changing the short-term market interest rates on the bank lending channel of monetary policy is more pronounced among 'old' EMU countries, whereas the effect of M2 is significant during the period of the global financial crisis (GFC) among 'old' EMU countries. Last but not least the important finding is that banks in 'new' EU countries react differently to monetary shocks.
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