The bank lending channel of monetary policy transmission in South Africa

dc.contributor.authorPirozhkova, Ekaterina
dc.contributor.authorViegi, Nicola
dc.contributor.emailnicola.viegi@up.ac.za
dc.date.accessioned2026-01-16T08:24:05Z
dc.date.available2026-01-16T08:24:05Z
dc.date.issued2025-12
dc.description.abstractThis paper studies the bank lending channel of monetary policy in South Africa. We measure credit supply with homeloan data from banks and nonbanks and we use monetary shocks via high-frequency asset price reactions to policy announcements in a proxy-SVAR model. We find that the bank lending channel is operative, as banks reduce the supply of homeloans after monetary tightening, negatively impacting the housing market. In addition, we show that the deposit channel underpins the bank lending channel’s effectiveness. After a monetary tightening, banks widen the deposits spread and the volume of deposits shrinks, as expected. Since retail deposits are vital stable funding for banks, this mechanism drives the lending channel.
dc.description.departmentEconomics
dc.description.librarianam2025
dc.description.sdgSDG-08: Decent work and economic growth
dc.description.urihttps://www.elsevier.com/locate/qref
dc.identifier.citationPirozhkova, E. & Viegi, N. 2025, 'The bank lending channel of monetary policy transmission in South AfricaI', Quarterly Review of Economics and Finance journal, vol. 104, art. 102041, pp. 1-12. https://doi.org/10.1016/j.qref.2025.102041.
dc.identifier.issn1062-9769 (print)
dc.identifier.issn1878-4259 (online)
dc.identifier.other10.1016/j.qref.2025.102041
dc.identifier.urihttp://hdl.handle.net/2263/107376
dc.language.isoen
dc.publisherElsevier
dc.rights© 2025 The Authors. Published by Elsevier Inc. on behalf of Board of Trustees of the University of Illinois. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).
dc.subjectMonetary policy transmission
dc.subjectBank lending channel
dc.subjectCredit channel
dc.subjectNonbank financial institutions
dc.subjectHousing finance
dc.titleThe bank lending channel of monetary policy transmission in South Africa
dc.typeArticle

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