Abstract:

In a context of significant information asymmetries and weak credit market development, the asymmetric sensitivity of bank’s credit activity to monetary shocks could be caused by their inability to adjust their assets. Our analysis is based on the hypothesis that there is a link between bank characteristics and the response of credit supply to monetary policy. Our literature review aims to identify the main findings of rigorous studies on the evaluation of bank lending as a transmission channel from monetary policy to the real sphere. Thus, we seek to understand the mechanisms by which the various balance sheet variables of banks influence the sensitivity of credit activity to monetary impulses, in order to situate our study in the broad context of the overall review of credit theory in an environment of information asymmetries.

Keywords:

Bank credit channel; monetary policy; Bank assets; Bank liquidity; Microeconomic data; Macroeconomic data; Balance sheet variables.

Codes JEL:

E51; E52; G21.

How to Cite:

Kholoud Ouyadine and Yousra Yammad. The Evaluation of Bank Credit as a Channel of Transmission of Monetary Policy: An Overview. [ref]: vol.22.2024. available at: https://refpress.org/ref-vol22-a57/