The Effectiveness of the Transmission Mechanism’s Credit Channel: A Case Study of the Visegrad Four Countries

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F24%3A39922257" target="_blank" >RIV/00216275:25410/24:39922257 - isvavai.cz</a>

Result on the web

<a href="https://link.springer.com/chapter/10.1007/978-3-031-55813-9_20" target="_blank" >https://link.springer.com/chapter/10.1007/978-3-031-55813-9_20</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/978-3-031-55813-9" target="_blank" >10.1007/978-3-031-55813-9</a>

Result language

angličtina

Original language name

The Effectiveness of the Transmission Mechanism’s Credit Channel: A Case Study of the Visegrad Four Countries

Original language description

This article aims to evaluate the impact of the transmission mechanism’s credit channel in the countries of the Visegrad Four (V4) for the period of 2007 to 2021. The analysis examines the dependence between the selected central banks’ interest rates and the amount of loans provided to nonfinancial business entities (loans) and subsequently the dependence between loans and gross domestic product (GDP) in the V4 countries. The analysis is conducted using time series analysis. The empirical results did not indicate the presence of long-term relationships between the selected variables for the V4 countries. In all the V4 countries, a mutual short-term relationship was seen between the given country’s basic central bank interest rates and the amount of loans provided to non-financial business entities and, at the same time, between loans and GDP. On the basis of these results, it can be stated that the monetary policy transmission mechanism’s credit channel is effective in the V4 countries only in the short term. Monetary policy’s credit transmission mechanism was seen to operate both for the autonomous central banks—in the Czech Republic, Poland, and Hungary—as well as for the National Bank of Slovakia, which is subject to the European Central Bank’s policy.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Article name in the collection

Eurasian Business and Economics Perspectives : Proceedings of the 41st Eurasia Business and Economics Society Conference

ISBN

978-3-031-55812-2

ISSN

2364-5067

e-ISSN

2364-5075

Number of pages

15

Pages from-to

"357 "- 372

Publisher name

Springer Nature Switzerland AG

Place of publication

Cham

Event location

Berlín

Event date

Oct 12, 2022

Type of event by nationality

EUR - Evropská akce

UT code for WoS article

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