Sichei, Moses Muse2008-02-152008-02-152005-11Sichei, MM 2005, 'Bank lending channel in South Africa : bank-level dynamic panel data analysis', University of Pretoria, Department of Economics, Working paper series, no. 2005-10. [http://web.up.ac.za/default.asp?ipkCategoryID=736&sub=1&parentid=677&subid=729&ipklookid=3]http://hdl.handle.net/2263/4513The paper investigates the bank-lending channel (BLC) of monetary policy in South Africa using quarterly bank-level data for the period 2000Q1-2004Q4. Capital adequacy and bank size are used as indicators for information problems faced by banks when they look for external finance. Utilising dynamic panel estimation methods the study shows that BLC operates in South Africa. The finding has some policy implications. First, there is need to coordinate monetary policy with financial innovations and prudential banking regulations. Second, the overall effects of monetary policy pursued by the South African Reserve Bank cannot be completely characterised by interest rates only.273734 bytesapplication/pdfenUniversity of Pretoria, Department of EconomicsMonetary policy transmissionBank-lending channel (BLC)Dynamic panelGMM estimatorBank loans -- South AfricaMonetary policy -- South AfricaWorking Paper