Year of Graduation
Influence of Central Bank policy on the Structure of banking
This paper discover the monetary transmission mechanism, in particular, bank lending channel. The model was tested using different variables for charachteristics of banking sector, monetary policy and also takes into account period during the financial crisis. Data was collected for more than 100 banks in 15 countries during the period from 1st quartile of 2002 to 4th quartile of 2012. The tested model shows that the channel of bank lending has been changing, and old models require new variables for bank-specific characteristics. As a result, we get significant results and all hypothesis was confirmed. Paper shows the effiently working bank credit channel using different specifications.