Financial development and the bank lending channel in developing countries

This article analyses how financial development affects the bank lending channel in developing countries. Our analysis is carried out on a sample of 693 commercial banks from 31 developing countries between 2000 and 2012. We find that the loan supply of banks that operate in countries with less deve...

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Detalles Bibliográficos
Autores: Sanfilippo Azofra, Sergio|||0000-0001-8941-2033, Torre Olmo, Begoña|||0000-0001-6081-9868, Cantero Saiz, María|||0000-0002-1442-3130, López Gutiérrez, Carlos|||0000-0003-1703-6440
Tipo de recurso: artículo
Fecha de publicación:2018
País:España
Institución:Universidad de Cantabria (UC)
Repositorio:UCrea Repositorio Abierto de la Universidad de Cantabria
Idioma:inglés
OAI Identifier:oai:repositorio.unican.es:10902/15081
Acceso en línea:http://hdl.handle.net/10902/15081
Access Level:acceso abierto
Palabra clave:Financial development
Banks’ loan supply
Monetary policy
Bank lending channel
Descripción
Sumario:This article analyses how financial development affects the bank lending channel in developing countries. Our analysis is carried out on a sample of 693 commercial banks from 31 developing countries between 2000 and 2012. We find that the loan supply of banks that operate in countries with less developed financial systems is not affected by monetary policy changes. In countries with more developed financial systems, the bank lending channel is effective, but only after the financial crisis. Moreover, in these countries, the negative effect of monetary policy contractions on bank lending is greater when financial development rises.