Banking market structure and monetary policy
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Date
2004
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Banco Central de Chile
Abstract
Description
This volume contains several macroeconomic and microeconomic works on the subjects of monetary policy transmission and the regulation of the banking industry. The reason to consider both issues in the same volume lies in the fact that some channels whereby monetary policy reaches the real sector hinge on the structure of the banking sector (e.g. barriers to entry, degree of competition, financial taxation) and on some informational distortions typically ascribed to the financial sector (borrower lender relationship, and ownership relations). The book also combines empirical and theoretical contributions on issues that are relevant for Chile and other emerging economies. A common feature of the findings reported in these works is that regulatory distortions have an important effect on the efficiency and profitability of the banking industry. Whether we measure the spread from intermediation or the interest rates charged on traditional banking activities, the microeconomic structure has an effect on these variables. The natural question to pursue involves the effect of these regulatory and industry conditions on the transmission of monetary policy. Certainly, the evidence presented here provides interesting venues for future research and policy implications.
Keywords
MECANISMO DE TRANSMISIÓN (POLÍTICA MONETARIA), POLÍTICA MONETARIA