Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/122099
Authors: 
Kovacevic, Dejan
Year of Publication: 
2015
Series/Report no.: 
Graduate Institute of International and Development Studies Working Paper 10/2015
Abstract: 
The paper investigates transmission of different foreign and domestic shocks to bank lending activity in Bosnia and Herzegovina through the bank lending channel. The bank lending channel is analyzed in a time series cross sectional data framework for the period 2006q1-2014q1, investigating reactions of small vs. large banks to those shocks. First, the evidence has been found that both groups of banks decreased their lending activity in the aftermath of the crisis. There is some evidence that liquidity shock after the onset of the crisis is mainly transmitted through large banks that are affiliates of the large Western European banking groups. Second, strong evidence is found that loosening of domestic monetary conditions through required reserves rate change had a positive effect on lending supply, especially for small banks operating in the country.
Subjects: 
financial crisis
monetary policy
bank lending channel
credit growth
JEL: 
C13
C23
E58
E52
Document Type: 
Working Paper

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