BANK LENDING CHANNEL IN SLOVENIA
BANK LENDING CHANNEL IN SLOVENIA

Author(s): Meta Ahtik
Subject(s): Economic policy, Financial Markets
Published by: Masarykova univerzita nakladatelství
Keywords: monetary policy transmission; bank lending channel; bank characteristics; Slovenia;
Summary/Abstract: Channels through which monetary policy affects aggregate demand can be divided into three paths: traditional interest rate channel, other asset price channels and credit channel composed of balance sheet channel (named also broad credit channel), only recently separated bank capital channel and bank lending channel. Banks face troubles in keeping their present or acquiring new financial sources, when central bank tightens its monetary policy. Banks characterized by differences in size, capitalization, liquidity and ownership face different levels of informational asymmetry and are therefore differently affected by changes in monetary policy.

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