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Does Monetary Policy Affect Bank Lending? Evidence for Bolivia

In: Monetary Policy and Financial Stability in Latin America and the Caribbean

Author

Listed:
  • Óscar Alberto Díaz-Quevedo

    (Banco Central de Bolivia)

  • C. Tatiana Rocabado-Palomeque

    (Banco Central de Bolivia)

Abstract

This paper explores the existence of a bank lending channel for Bolivia. The estimates used panel data through GMM and fixed effects model. The results show that changes in monetary policy have direct effects on the banks’ loans supply, because increases in the securities’ supply lead to reductions in loan growth. Moreover, interactions size and capital of entities with variable monetary policy would reflect the existence of different bank’s reactions

Suggested Citation

  • Óscar Alberto Díaz-Quevedo & C. Tatiana Rocabado-Palomeque, 2018. "Does Monetary Policy Affect Bank Lending? Evidence for Bolivia," Investigación Conjunta-Joint Research, in: Alberto Ortiz-Bolaños (ed.), Monetary Policy and Financial Stability in Latin America and the Caribbean, edition 1, volume 1, chapter 2, pages 9-40, Centro de Estudios Monetarios Latinoamericanos, CEMLA.
    • Handle: RePEc:cml:incocp:5en-2
    Note: Joint Research Program XIX Meeting of the Central Bank Researchers Network
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    References listed on IDEAS

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    Cited by:

    1. María José Roa & Alejandra Villegas & Ignacio Garrón, 2020. "Effects of interest rate caps on microcredit: evidence from a natural experiment in Bolivia," Development Research Working Paper Series 03/2020, Institute for Advanced Development Studies.

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    More about this item

    Keywords

    monetary policy; lending channel; GMM.;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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