BOFIT Discussion Papers, Institute for Economies in Transition, Bank of Finland
The role of banks in monetary policy transmission: Empirical evidence from Russia
(), Laura Solanko
() and Alexei Karas
Abstract: This paper focuses on the role of the banking sector in
monetary policy transmission in an emerging economy with a rapidly
developing financial system. Specifically, we exam whether the central
bank's monetary policy stance affects banks' lending behaviour. Based on a
comprehensive quarterly dataset on all Russian banks from 1Q1999 to 1Q2007,
we find evidence for the existence of a bank lending channel in Russia.
Contrary to several studies on developed economies, the level of a bank's
capitalization matters for the transmission process. Better capitalized
banks are less likely to adjust their lending practices following a change
in the monetary policy stance.
Keywords: monetary policy transmission; bank lending; Russia; (follow links to similar papers)
JEL-Codes: C23; E44; E52; G21; (follow links to similar papers)
27 pages, July 6, 2009
Before downloading any of the electronic versions below
you should read our statement on
for viewing Postscript files and the
Acrobat Reader for viewing and printing pdf files.
Full text versions of the paper:
Questions (including download problems) about the papers in this series should be directed to Päivi Määttä ()
Report other problems with accessing this service to Sune Karlsson ()
or Helena Lundin ().
Design by Joachim Ekebom