Monetary policy, prudential regulations and bank lending behaviour in Africa
Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
Macroeconomics and Finance in Emerging Market Economies
Abstract
The study examines the effect of monetary policy and prudential
regulations on bank lending behaviour in Africa. This study employs
the Two-Stage Least squares (2SLS) estimation technique for a panel
dataset of 54 African countries over the period 2004–2021. The
study finds that monetary policy and prudential regulations reduce
bank lending and the impact is better in countries with a strong
institutional environment. It provides evidence to affirm that monetary policy and prudential regulations provide complementarity
effect in yielding a desirable outcome for bank lending
Description
Research Article
Keywords
Monetary policy, macro-prudential, Anti-money laundering