Bank lending channel and monetary policy in Nigeria

Bank lending channel and monetary policy in Nigeria

We find that the Central Bank of Nigeria's (CBN) policy of consolidation and restructuring from 2002 to 2008 strengthened the bank lending channel (BLC). We use the Generalised Method of Moments (GMM) two step estimator to test the existence of the BLC using a sample of 23 banks. Our results sh...

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Bibliographic Details
Main Authors: Matousek, R. (Author), Solomon, H. (Author)
Format: Article
Language:English
Published: Elsevier Ltd 2018
Subjects:
Bank lending channel
GMM
Monetary transmission mechanism
Nigeria
Panel data
Online Access:View Fulltext in Publisher
Description
Summary:We find that the Central Bank of Nigeria's (CBN) policy of consolidation and restructuring from 2002 to 2008 strengthened the bank lending channel (BLC). We use the Generalised Method of Moments (GMM) two step estimator to test the existence of the BLC using a sample of 23 banks. Our results show that the loan growth is more sensitive to changes in bank size and capitalization. Furthermore, the central bank's restructuring activities improved the impact of the BLC. © 2017
ISBN:02755319 (ISSN)
DOI:10.1016/j.ribaf.2017.07.180

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