Chulalongkorn University Theses and Dissertations (Chula ETD)
Other Title (Parallel Title in Other Language of ETD)
บทบาทของเงินกองทุนต่อกลไกการส่งผ่านนโยบายทางการเงิน
Year (A.D.)
2022
Document Type
Independent Study
First Advisor
Pornpitchaya Kuwalairat
Faculty/College
Faculty of Commerce and Accountancy (คณะพาณิชยศาสตร์และการบัญชี)
Department (if any)
Department of Banking and Finance (ภาควิชาการธนาคารและการเงิน)
Degree Name
Master of Science
Degree Level
Master's Degree
Degree Discipline
Finance
DOI
10.58837/CHULA.IS.2022.310
Abstract
This study examines the role of bank capital in the transmission of monetary policy, considering the bank lending channel (BLC) and financial development. Analyzing bank-level data from nine countries during 2007-2021 with GMM method, the study finds that well-capitalized banks are better positioned to expand loan supply and withstand adverse shocks. However, behavioral patterns differ between developed and ASEAN countries. In developed nations, policy rate changes have inconclusive effects on loan growth, while profitable banks and inflation drive credit expansion. In ASEAN countries, policy rate increases are associated with loan growth, reflecting favorable economic conditions. Financial development impacts credit expansion differently in developed and ASEAN countries, with improved financial systems mitigating shocks in ASEAN. These findings emphasize the importance of bank capital and the need for policymakers to consider bank capital and financial development in designing effective monetary policies.
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Recommended Citation
Rosmontee, Waraluk, "The role of bank capital through monetary policy transmission mechanism" (2022). Chulalongkorn University Theses and Dissertations (Chula ETD). 10035.
https://digital.car.chula.ac.th/chulaetd/10035