Asymmetric effects of central bank funding on commercial banking sector behaviour

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buir.contributor.authorBerument, Hakan
dc.citation.epage147en_US
dc.citation.issueNumber1en_US
dc.citation.spage128en_US
dc.citation.volumeNumber32en_US
dc.contributor.authorŞahin, A.en_US
dc.contributor.authorBerument, Hakanen_US
dc.date.accessioned2020-02-21T09:50:04Z
dc.date.available2020-02-21T09:50:04Z
dc.date.issued2019-02
dc.departmentDepartment of Economicsen_US
dc.description.abstractIn this paper, we assess the effects of Central Bank Funding (C.B.F.) on commercial bank lending behaviour by using weekly Turkish data from 7 January 2011 to 5 June 2015. To be specific, using the Nonlinear Autoregressive Distributed Lag Error Correction Model, we assess the effects of C.B.F. provided daily by the Central Bank of the Republic of Turkey through Open Market Operations to financial markets. Our empirical evidence reveals that for all types of lending, an increase in C.B.F. (which has a higher cost for commercial banks relative to alternatives) forces commercial banks to borrow from higher-cost channels, i.e., we find that increasing C.B.F. discourages commercial bank lending. We also find that decreases in C.B.F. that proxy what commercial banks can borrow more cheaply from alternative sources increase commercial bank lending. However, increasing C.B.F. is more effective than decreasing C.B.F. for Total Bank Loans, Total Credit Cards and Automobile Loans, and decreasing C.B.F. is more effective in the short run for Consumption Loans, Housing Loans and Commercial Loans: short-run asymmetry. Therefore, we can report only limited support for long-run asymmetry, and consequently, claim that there is magnitude (an increase versus decrease in C.B.F.) and category asymmetry (across different lending categories).en_US
dc.identifier.doi10.1080/1331677X.2018.1552174en_US
dc.identifier.eissn1848-9664
dc.identifier.issn1331-677X
dc.identifier.urihttp://hdl.handle.net/11693/53467
dc.language.isoEnglishen_US
dc.publisherTaylor & Francisen_US
dc.relation.isversionofhttps://dx.doi.org/10.1080/1331677X.2018.1552174en_US
dc.source.titleAsymmetric effects of central bank funding on commercial banking sector behaviouren_US
dc.subjectMonetary policyen_US
dc.subjectCentral bankingen_US
dc.subjectCentral bank fundingen_US
dc.subjectNARDL-ECMen_US
dc.titleAsymmetric effects of central bank funding on commercial banking sector behaviouren_US
dc.typeArticleen_US
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