Download Banking Credit, Policy Interest Rate and Reserve Requirements in

Banking Credit, Policy Interest Rate and Reserve
Requirements in Peru
Oscar Dancourt
Pontificia Universidad Católica del Perú
Summary
This paper evaluates the relevance of the “bank lending channel’’ of monetary
policy transmission in Peru with disaggregated monthly data of the Peruvian
banks balance sheets from January 2003 to December 2011. We study two
policy instruments used during the inflation targeting regime: the short-term
interest rate or policy rate and the reserve requirements on banks deposits. In
a Bernanke-Blinder model where the monetary authority sets the interest rate
instead of a monetary aggregate, the increases in both policy instruments have a
negative impact on economic activity and bank loans. Using dynamic panel data
techniques, we find that the short-term interest rate and the reserve requirements
have a negative impact on the growth rate of bank loans.
JEL: E44, E52.
Keywords: bank lending channel, Bernanke-Blinder model, monetary policy
transmission, policy rate, reserve requirements.
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CRÉDITO BANCARIO, TASA DE INTERÉS DE POLÍTICA MONETARIA
Y TASA DE ENCAJES EN EL PERÚ