The Impact of Monetary Policy on Lending and Deposit Rates in Pakistan

dc.contributor.author	Hasan Muhammad Mohsin
dc.date.accessioned	2014-08-18T07:06:15Z
dc.date.available	2014-08-18T07:06:15Z
dc.date.issued	2011-09
dc.identifier.citation	The Lahore Journal of Economics Volume 16, No.SE	en_US
dc.identifier.issn	1811-5438
dc.identifier.uri	http://121.52.153.179/Volume.html
dc.identifier.uri	http://hdl.handle.net/123456789/5918
dc.description	PP.15 ;ill	en_US
dc.description.abstract	This study estimates the impact of monetary policy on lending and deposit rates in Pakistan, using bank data for the period November 2001 to March 2011. We find evidence of a long-run relationship between the lending and discount rate, but the deposit rate is not co-integrated, and the pass-through is not complete. The study finds that, overall, banks pass on only 20 percent of the impact of a change in the discount rate to lenders in the first month. There is also a significant difference among various banks’ pass-through rates. A shortrun analysis reveals that the pass-through of the deposit rate is low at 0.16, which implies that the effectiveness of monetary policy is limited in Pakistan	en_US
dc.language.iso	en	en_US
dc.publisher	© The Lahore School of Economics	en_US
dc.subject	Monetary Policy	en_US
dc.subject	Lending	en_US
dc.subject	Deposit Rates	en_US
dc.subject	Pakistan	en_US
dc.title	The Impact of Monetary Policy on Lending and Deposit Rates in Pakistan	en_US
dc.title.alternative	Panel Data Analysis	en_US
dc.type	Article	en_US