The impact of monetary policy on bank lending rate in South Africa
The pass-through of the policy rates to bank lending rate is an important subject matter because it measures the effectiveness of monetary policy to control inflation or stabilize the economy. This study investigates the long-run interest rate pass-through of the money market rate to the bank lendin...
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| Format: | Article |
| Language: | English |
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Borsa Istanbul Anonim Sirketi
2015
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| Online Access: | http://psasir.upm.edu.my/id/eprint/46614/ http://psasir.upm.edu.my/id/eprint/46614/1/The%20impact%20of%20monetary%20policy%20on%20bank%20lending%20rate%20in%20South%20Africa.pdf |
| _version_ | 1848850698973741056 |
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| author | Tunde, Matemilola Bolaji Amin Noordin, Bany Ariffin Etudaiye-Muhtar, Oyebola Fatima |
| author_facet | Tunde, Matemilola Bolaji Amin Noordin, Bany Ariffin Etudaiye-Muhtar, Oyebola Fatima |
| author_sort | Tunde, Matemilola Bolaji |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The pass-through of the policy rates to bank lending rate is an important subject matter because it measures the effectiveness of monetary policy to control inflation or stabilize the economy. This study investigates the long-run interest rate pass-through of the money market rate to the bank lending rate and asymmetric adjustment of the bank lending rate. The study applies the momentum threshold autoregressive and asymmetric error correction models. The asymmetric error correction results reveal that bank lending rate adjusts to a decrease in the money market rate in South Africa. The findings suggest that the South African commercial banks adjust their lending rate downward but the lending rate appears rigid upward, which supports the customer reaction hypothesis. |
| first_indexed | 2025-11-15T10:10:26Z |
| format | Article |
| id | upm-46614 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:10:26Z |
| publishDate | 2015 |
| publisher | Borsa Istanbul Anonim Sirketi |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-466142019-10-18T00:54:02Z http://psasir.upm.edu.my/id/eprint/46614/ The impact of monetary policy on bank lending rate in South Africa Tunde, Matemilola Bolaji Amin Noordin, Bany Ariffin Etudaiye-Muhtar, Oyebola Fatima The pass-through of the policy rates to bank lending rate is an important subject matter because it measures the effectiveness of monetary policy to control inflation or stabilize the economy. This study investigates the long-run interest rate pass-through of the money market rate to the bank lending rate and asymmetric adjustment of the bank lending rate. The study applies the momentum threshold autoregressive and asymmetric error correction models. The asymmetric error correction results reveal that bank lending rate adjusts to a decrease in the money market rate in South Africa. The findings suggest that the South African commercial banks adjust their lending rate downward but the lending rate appears rigid upward, which supports the customer reaction hypothesis. Borsa Istanbul Anonim Sirketi 2015-03 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/46614/1/The%20impact%20of%20monetary%20policy%20on%20bank%20lending%20rate%20in%20South%20Africa.pdf Tunde, Matemilola Bolaji and Amin Noordin, Bany Ariffin and Etudaiye-Muhtar, Oyebola Fatima (2015) The impact of monetary policy on bank lending rate in South Africa. Borsa Istanbul Review, 15 (1). pp. 53-59. ISSN 2214-8450; ESSN: 2214-8469 10.1016/j.bir.2014.09.003 |
| spellingShingle | Tunde, Matemilola Bolaji Amin Noordin, Bany Ariffin Etudaiye-Muhtar, Oyebola Fatima The impact of monetary policy on bank lending rate in South Africa |
| title | The impact of monetary policy on bank lending rate in South Africa |
| title_full | The impact of monetary policy on bank lending rate in South Africa |
| title_fullStr | The impact of monetary policy on bank lending rate in South Africa |
| title_full_unstemmed | The impact of monetary policy on bank lending rate in South Africa |
| title_short | The impact of monetary policy on bank lending rate in South Africa |
| title_sort | impact of monetary policy on bank lending rate in south africa |
| url | http://psasir.upm.edu.my/id/eprint/46614/ http://psasir.upm.edu.my/id/eprint/46614/ http://psasir.upm.edu.my/id/eprint/46614/1/The%20impact%20of%20monetary%20policy%20on%20bank%20lending%20rate%20in%20South%20Africa.pdf |