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The Bank Lending Channel in the CEMAC Zone

by Gilbert Galibaka
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Current price ₹5,111.00
Original price ₹5,586.00
Original price ₹5,586.00
Original price ₹5,586.00
(-9%)
₹5,111.00
Current price ₹5,111.00

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Book cover type: Paperback
  • ISBN13: 9786209764332
  • Binding: Paperback
  • Subject: N/A
  • Publisher: Our Knowledge Publishing
  • Publisher Imprint: Our Knowledge Publishing
  • Publication Date:
  • Pages: 52
  • Original Price: USD 57.0
  • Language: English
  • Edition: N/A
  • Item Weight: 82 grams
  • BISAC Subject(s): Banks & Banking

This paper examines the existence of a bank lending channel in the monetary policy transmission mechanism in the CEMAC zone, based on banking data from the BEAC and COBAC. Using a dynamic panel GMM approach, the paper highlights four findings: First, confirmation of the existence of a bank lending channel in the CEMAC zone. Second, the central bank's monetary policy decisions have a greater impact on banks with predominantly foreign capital than on those with predominantly domestic capital. Third, small and medium-sized banks, whether foreign or domestic, are more responsive to changes in the central bank's policy rate. Finally, liquidity is a factor that can render monetary policy decisions ineffective in influencing the behavior of commercial banks in the CEMAC zone.

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