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Title:	Monetary policy, bank lending and bank efficiency : a panel evidence of Egypt and Jordan
Authors:	Nanyanzi Hajarah (P57368)
Supervisor:	Mariani Abdul-Majid, Professor. Dr.
Keywords:	Bank policy lending efficiency Egypt and Jordan
Issue Date:	23-Jun-2014
Description:	Banks play a unique role in the transmission of monetary policy in order to foster economic development. However, there still exists a debate among economists on the impact of monetary policy shocks upon bank efficiency through bank lending channel of monetary policy transmission. This dissertation is comprised of two empirical assays; the first investigates the presence of the bank lending channel of monetary policy transmission in Egypt and Jordan. Monetary policy is identified through a non-recursive structural VAR (SVAR) methodology and the bank loan supply function is estimated using a dynamic panel data technique namely the “Generalized Method of Moments (GMM)”. Empirical results indicate the presence of bank lending channel in Egypt and Jordan through a negative coefficient of monetary policy shocks in the bank loan supply model. The second essay investigates the effect of monetary policy shocks on bank efficiency in Egypt and Jordan. Bank efficiency is estimated using “stochastic output distance function approach while a dynamic model of the factors affecting bank efficiency is estimated using the GMM methodology. The parameter estimates indicate that during the sample period, Jordanian banks are on average more efficient than Egyptian banks. In the baseline model, a significant negative parameter of the effect of monetary policy shocks on the efficiency of banks is obtained. Overall these results show that monetary policy shocks and environmental variables contribute significantly to the efficiency estimates across the two countries. The policy implications from these two studies indicate that the bank lending is an important channel through which monetary policy can be smoothly transmitted for achieving the final macroeconomic target in these two economies. Similarly, bank efficiency is reduced by the contraction in monetary policy. Therefore, relevant policies should be implemented by providing banks incentives that can help shield their loan portfolios and operations better during a contractionary monetary policy to improve their lending and efficiency.,Master/Sarjana
Pages:	127
Publisher:	UKM, Bangi
Appears in Collections:	Faculty of Economy and Management / Fakulti Ekonomi dan Pengurusan

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