Do Bank Characteristics Affect Bank Lending Behaviour?

Solomon, H., Mullineux, A. and De Jager, P. 2022. Do Bank Characteristics Affect Bank Lending Behaviour? The African Finance Journal. 24 (1), pp. 1-15.

TitleDo Bank Characteristics Affect Bank Lending Behaviour?
TypeJournal article
AuthorsSolomon, H., Mullineux, A. and De Jager, P.
Abstract

This paper investigates the bank lending behaviour in South Africa to see how banks with different characteristics and different types of loans react during changes in interest rates. We find asymmetric effects in the adjustment of loan supply by banks of different characteristics during periods of monetary easing. Smaller, less liquid, poorly capitalised banks are slower in adjusting loan supply during periods of monetary easing. Our study reveals that we may be missing significant information about the monetary transmission mechanism in South Africa by not using bank loan components in analysis.

Keywordsbank characteristics
bank lending channel
monetary policy
panel data
South Africa
JournalThe African Finance Journal
Journal citation24 (1), pp. 1-15
ISSN1605-9786
Year2022
PublisherAfrican Finance Association
Web address (URL)https://journals.co.za/doi/10.10520/ejc-finj_v24_n1_a1

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