Bank heterogeneity in interest rate pass-through: A panel evidence of Pakistan

IF 0.7 Q4 BUSINESS, FINANCE

Asian Academy of Management Journal of Accounting and Finance Pub Date : 2021-12-10 DOI:10.21315/aamjaf2021.17.2.5

A. Nizamani, Zulkefly Abdul Karim, M. Zaidi, Norlin Khalid

引用次数: 2

Abstract

This article examines the role of bank-level characteristics in determining the nature of interest rate pass-through from monetary policy rates to commercial banks’ lending rates in Pakistan. Several bank-level factors, namely market size, liquidity, capitalisation, profitability, and competition level, were used in analysing the pass-through mechanism. This study utilised a dynamic heterogeneous panel technique, namely the Pooled Mean Group (PMG) estimation for the sample of 12 private commercial banks, over the time span 2003:Q2 to 2015:Q4. Banks of smaller size, large capital, and higher liquidity were significantly affecting the interest rate pass-through procedure. Thus, to improve monetary policy’s transmission mechanism, Pakistan’s central bank should limit bank capitalisation and draw out excess liquidity from the banking sector.

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利率传递中的银行异质性:巴基斯坦的小组证据

本文考察了银行层面的特征在决定巴基斯坦从货币政策利率到商业银行贷款利率的利率传递性质中的作用。几个银行层面的因素，即市场规模，流动性，资本化，盈利能力和竞争水平，被用于分析传递机制。本研究在2003年第二季度至2015年第四季度期间对12家私营商业银行的样本采用了动态异质性面板技术，即汇总平均组(PMG)估计。规模小、资本大、流动性高的银行对利率传递过程影响显著。因此，为了改善货币政策的传导机制，巴基斯坦央行应限制银行资本化，并从银行业抽走过剩流动性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Asian Academy of Management Journal of Accounting and Finance BUSINESS, FINANCE-

CiteScore

1.50

自引率

0.00%

发文量

审稿时长

20 weeks

期刊介绍： To provide a forum for the exchange of ideas and dissemination of empirical findings and analytical research in the specialized areas of accounting and finance with special emphasis on scholarly works with policy implications for countries in the Asia Pacific. The following are some of the topical subject areas relevant to the journal (but are not limited to): Accounting • Financial reporting and accounting standards • Auditing issues • Value based accounting and its relevance • Theory of accounting firm • Environmental auditing • Corporate governance issues • Public sector accounting Finance • Valuation of financial assets • International capital flows • Ownership and agency theory • Stock market behavior • Investment and portfolio management • Islamic banking and finance • Microstructures of financial markets