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Bank lending channel and monetary policy in Nigeria

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  • Matousek, Roman
  • Solomon, Helen

Abstract

We find that the Central Bank of Nigeria's (CBN) policy of consolidation and restructuring from 2002 to 2008 strengthened the bank lending channel (BLC). We use the Generalised Method of Moments (GMM) two step estimator to test the existence of the BLC using a sample of 23 banks. Our results show that the loan growth is more sensitive to changes in bank size and capitalization. Furthermore, the central bank's restructuring activities improved the impact of the BLC.

Suggested Citation

  • Matousek, Roman & Solomon, Helen, 2018. "Bank lending channel and monetary policy in Nigeria," Research in International Business and Finance, Elsevier, vol. 45(C), pages 467-474.
    • Handle: RePEc:eee:riibaf:v:45:y:2018:i:c:p:467-474
    DOI: 10.1016/j.ribaf.2017.07.180
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    Cited by:

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    6. Nguyen, Canh Phuc & Le, Thai-Ha & Su, Thanh Dinh, 2020. "Economic policy uncertainty and credit growth: Evidence from a global sample," Research in International Business and Finance, Elsevier, vol. 51(C).

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