Bank lending channel and banking sector efficiency: panel data of Egypt

Shokr, Mohamed Aseel and Gasaymeh, Anwar Al-,(2018), Bank lending channel and banking sector efficiency: panel data of Egypt. , International Journal of Emerging Markets, UNSPECIFIED

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Abstract

The purpose of this paper is to examine the relevance of the bank lending channel (BLC) of monetary policy and the bank efficiency in Egypt. Design/methodology/approach – This paper examines the effectiveness of bank lending channel using generalized method of moments GMM model during the period from 1996 to 2014. Also, it uses stochastic frontier approach (SFA) to examine the bank efficiency in Egypt. Findings – This study supports the relevance of the BLC using panel data. Moreover, applying SFA, this paper computes cost efficiency taking account of both time and country effects directly. The finding suggests that banks with low inflation and high GDP tend to perform more efficiently. Research limitations/implications – The limitation of the study is examining one country only. Practical implications – The finding signals that the Central Bank of Egypt (CBE) should adjust interest rate in order to stabilize the bank loan supply. Social implications – It is important for the CBE and Egyptian banks because it highlights the importance of BLC. Originality/value – It examines one channel of monetary policy and bank efficiency in Egypt. Keywords GMM, SFA, Bank efficiency, Bank lending channel, Monetary policy Paper type Research paper
Keywords : GMM, SFA, Bank efficiency, Bank lending channel, Monetary policy, UNSPECIFIED
Journal or Publication Title: International Journal of Emerging Markets
Volume: 13
Number: 5
Item Type: Article
Subjects: Ekonomi Pembangunan
Depositing User: Elok Inajati
Date Deposited: 26 Dec 2019 06:28
Last Modified: 26 Dec 2019 06:28
URI: https://repofeb.undip.ac.id/id/eprint/849

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