Monetary-Macroprudential Policy Synergy Through the Bank Lending Channel in Indonesia
This study examines the efficiency of monetary policy transmission via bank lending channels in Indonesia, specifically emphasizing its interaction with macroprudential policy. We utilize panel data encompassing individual-level information from banks in Indonesia from 2005 to 2019. The results of our analysis provide empirical support for the bank lending channel efficiency in the context of the monetary and macroprudential policy framework. The findings underscore the importance of macroprudential interactions in moderating the effect of monetary policy. Furthermore, our research uncovers asymmetrical consequences stemming from the implementation of monetary contraction/expansion policies, as well as the effects resulting from variances in the characteristics of banks. Our study enhances the understanding of the intricate relationship between monetary policy, macroprudential measures, and the bank lending channel in Indonesia.
Authors
- Sekar Utami Setiastuti (ORCID: https://orcid.org/0000-0001-6853-324X)
- Fitri Handayani (ORCID: https://orcid.org/0000-0001-8705-0577)
Institutions
- Universitas Gadjah Mada (ID)
- Badan Pusat Statistik (ID)
- Pancur Kasih Association (ID)
Publication Details
- Journal
- Emerging Markets Finance and Trade
- Published
- 2024-10-14
- DOI
- https://doi.org/10.1080/1540496x.2024.2404171
- Citations
- 3
- Primary Topic
- Islamic Finance and Banking Studies
- Type
- article
- Field-Weighted Citation Impact
- 2.84