Economics, Econometrics and Finance
4 years ago

Monetary policy changes in Bolivia directly impact bank lending supply.

Does Monetary Policy Affect Bank Lending? Evidence for Bolivia
Óscar Alberto Díaz-Quevedo, C. Tatiana Rocabado-Palomeque

Paper Summary

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The study looked at how changes in monetary policy affect bank lending in Bolivia. By analyzing data from different banks, the researchers found that when there is an increase in the supply of securities, it leads to a decrease in loan growth. This means that the amount of loans banks give out can be influenced by changes in monetary policy. Additionally, the size and capital of banks can also affect how they respond to changes in monetary policy.