Monetary Policy Transmission and Bank Lending In South Korea and Policy Implications

Asian Economic and Financial Review

关键词: Monetary policy transmission;    Bank loans;    Policy rate;    Bank deposits;    Exchange rate;    World interest rate;    3SLS.;   

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

This paper tests the bank lending channel for South Korea based on a simultaneous-equation model consisting of the demand for and the supply of bank loans. The three-stage least squares method is employed in empirical work. The demand for bank loans is negatively associated with the lending rate and positively affected by real GDP and the corporate bond yield. The supply of bank loans has a positive relationship with the lending rate and real bank deposits and a negative relationship with the central bank policy rate, the KRW/USD exchange rate and the 10-year U.S. government bond yield. Therefore, this study finds evidence of a bank lending channel for South Korea. Expansionary monetary policy through a lower policy rate or open market purchase of government bonds to increase bank deposits/reserves would increase bank loan supply.

【 授权许可】

CC BY