| Description |
1 online resource (36 pages) : color illustrations |
| Series |
IMF working paper ; WP/15/270 |
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IMF working paper ; WP/15/270.
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| Summary |
The transmission of monetary policy to credit aggregates and the real economy can be impaired by weaknesses in the contracting environment, shallow financial markets, and a concentrated banking system. We empirically assess the bank lending channel in Uganda during 2010-2014 using a supervisory dataset of loan applications and granted loans. Our analysis focuses on a short period during which the policy rate rose by 1,000 basis points and then came down by 1,200 basis points. We find that an increase in interest rates reduces the supply of bank credit both on the extensive and intensive margins, and there is significant pass-through to retail lending rates. We document a strong bank balance sheet channel, as the lending behavior of banks with high capital and liquidity is different from that of banks with low capital and liquidity. Finally, we show the impact of monetary policy on real activity across districts depends on banking sector conditions. Overall, our results indicate significant real effects of the bank lending channel in developing countries. --Abstract |
| Notes |
"December 2015." |
|
"Institute for Capacity Development, Research Department, and Strategy, Policy, and Review Department." |
|
Authors: Charles Abuka, Ronnie K. Alinda, Camelia Minoiu, José-Luis Peydró, and Andrea F. Presbitero |
| Bibliography |
Includes bibliographical references (pages 19-22) |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed February 2, 2016) |
| Subject |
Monetary policy -- Uganda
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Monetary policy -- Developing countries
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Bank loans -- Uganda
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Bank loans -- Developing countries
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Bank loans
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Monetary policy
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All Countries.
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Bank Balance Sheet Channel.
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Bank Lending Channel.
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Bank.
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Banks.
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Credit.
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Developing countries
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Uganda
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Uganda.
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| Form |
Electronic book
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| Author |
Abuka, Charles A.
|
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Minoiu, Camelia, 1977- (IMF staff)
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Peydró, José-Luis.
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Presbitero, Andrea F., (IMF staff)
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International Monetary Fund. Institute for Capacity Development.
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International Monetary Fund. Research Department.
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International Monetary Fund. Strategy, Policy, and Review Department.
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| ISBN |
1513529811 |
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9781513529813 |
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1513554883 |
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9781513554884 |
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1513535692 |
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9781513535692 |
| ISSN |
1018-5941 |
|
