Financial development and monetary policy transmission in a multiple-tool regime: The case of Vietnamese commercial banks

References

• Abdul Karim, Z., Azman-Saini, W. N. W., & Abdul Karim, B. (2011). Bank Lending Channel of Monetary Policy: Dynamic Panel Data Study of Malaysia. Journal of Asia-Pacific Business, 12(3), 225–41. https://doi.org/10.1080/10599231.2011.570618
   Google Scholar
• Akinci, D. A., Matousek, R., Radić, N., & Stewart, C. (2013). Monetary policy and the banking sector in Turkey. Journal of International Financial Markets, Institutions and Money, 27, 269–285. https://doi.org/10.1016/j.intfin.2013.08.001
   Web of Science ®Google Scholar
• Allen, F., Jackowicz, K., Kowalewski, O., & Kozłowski, Ł. (2017). Bank lending, crises, and changing ownership structure in Central and Eastern European countries. Journal of Corporate Finance, 42, 494–515. https://doi.org/10.1016/j.jcorpfin.2015.05.001
   Web of Science ®Google Scholar
• Altunbaş, Y., Fazylov, O., & Molyneux, P. (2002). Evidence on the bank lending channel in Europe. Journal of Banking & Finance, 26(11), 2093–2110. https://doi.org/10.1016/S0378-4266(02)
   Web of Science ®Google Scholar
• Altunbas, Y., Gambacorta, L., & Marques-Ibanez, D. (2009). Securitisation and the bank lending channel. European Economic Review, 53(8), 996–1009. https://doi.org/10.1016/j.euroecorev.2009.03.004
   Web of Science ®Google Scholar
• Altunbas, Y., Gambacorta, L., & Marques-Ibanez, D. (2010). Bank risk and monetary policy. Journal of Financial Stability, 6(3), 121–129. https://doi.org/10.1016/j.jfs.2009.07.001
   Web of Science ®Google Scholar
• Amidu, M., & Wolfe, S. (2013). The effect of banking market structure on the lending channel: Evidence from emerging markets. Review of Financial Economics, 22(4), 146–157. https://doi.org/10.1016/j.rfe.2013.05.002
   Google Scholar
• Anwar, S., & Nguyen, L. P. (2018). Channels of monetary policy transmission in Vietnam. Journal of Policy Modeling, 40(4), 709–729. https://doi.org/10.1016/j.jpolmod.2018.02.004
   Web of Science ®Google Scholar
• Archer, D. (2006). Implications of recent changes in banking for the conduct of monetary policy. BIS Papers, 28, 123–151. http://dx.doi.org/10.2139/ssrn.1188516
   Google Scholar
• Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/2297968
   Web of Science ®Google Scholar
• Arellano, M., & Bover, O. (1995). Another look at the instrumental variable estimation of error-components models. Journal of Econometrics, 68(1), 29–51. https://doi.org/10.1016/0304-4076(94)
   Web of Science ®Google Scholar
• Atta-Mensah, J., & Dib, A. (2008). Bank lending, credit shocks, and the transmission of Canadian monetary policy. International Review of Economics & Finance, 17(1), 159–176. https://doi.org/10.1016/j.iref.2006.06.003
   Web of Science ®Google Scholar
• Auer, S., Friedrich, C., Ganarin, M., Paligorova, T., & Towbin, P. (2019). International monetary policy transmission through banks in small open economies. Journal of International Money and Finance, 90, 34–53. https://doi.org/10.1016/j.jimonfin.2018.08.008
   Web of Science ®Google Scholar
• Aysun, U., Brady, R., & Honig, A. (2013). Financial frictions and the strength of monetary transmission. Journal of International Money and Finance, 32, 1097–1119. https://doi.org/10.1016/j.jimonfin.2012.09.003
   Web of Science ®Google Scholar
• Bashir, U., Yugang, Y., & Hussain, M. (2020). Role of bank heterogeneity and market structure in transmitting monetary policy via bank lending channel: Empirical evidence from Chinese banking sector. Post-Communist Economies, 32(8), 1038–1061. https://doi.org/10.1080/14631377.2019.1705082
   Web of Science ®Google Scholar
• Bernanke, B. S., & Blinder, A. S. (1988). Credit, money, and aggregate demand. National Bureau of Economic Research Cambridge, Mass.
   Google Scholar
• Bernanke, B. S., & Gertler, M. (1995). Inside the black box: The credit channel of monetary policy transmission. Journal of Economic Perspectives, 9(4), 27–48. https://doi.org/10.3386/w5146
   Web of Science ®Google Scholar
• Blundell, R., & Bond, S. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87(1), 115–143. https://doi.org/10.1016/S0304-4076(98)
   Web of Science ®Google Scholar
• Borio, C., & Gambacorta, L. (2017). Monetary policy and bank lending in a low interest rate environment: Diminishing effectiveness? Journal of Macroeconomics, 54, 217–231. https://doi.org/10.1016/j.jmacro.2017.02.005
   Web of Science ®Google Scholar
• Boukhatem, J., & Djelassi, M. (2022). The bank-lending channel of monetary policy transmission in a dual banking system: Empirical evidence from panel VAR modeling. Cogent Economics & Finance, 10(1), 2107765. https://doi.org/10.1080/23322039.2022.2107765
   Web of Science ®Google Scholar
• Brei, M., & Schclarek, A. (2015). A theoretical model of bank lending: Does ownership matter in times of crisis? Journal of Banking & Finance, 50, 298–307. https://doi.org/10.1016/j.jbankfin.2014.03.038
   Web of Science ®Google Scholar
• Brissimis, S. N., & Delis, M. D. (2009). Identification of a loan supply function: A cross-country test for the existence of a bank lending channel. Journal of International Financial Markets, Institutions and Money, 19(2), 321–335. https://doi.org/10.1016/j.intfin.2008.01.004
   Google Scholar
• Brissimis, S. N., & Magginas, N. S. (2005). Changes in financial structure and asset price substitutability: A test of the bank lending channel. Economic Modelling, 22(5), 879–904. https://doi.org/10.1016/j.econmod.2005.06.003
   Web of Science ®Google Scholar
• Cantero-Saiz, M., Sanfilippo-Azofra, S., Torre-Olmo, B., & López-Gutiérrez, C. (2014). Sovereign risk and the bank lending channel in Europe. Journal of International Money and Finance, 47, 1–20. https://doi.org/10.1016/j.jimonfin.2014.04.008
   Web of Science ®Google Scholar
• Carranza, L., Galdon‐Sanchez, J. E., & Gomez‐Biscarri, J. (2010). Understanding the relationship between financial development and monetary policy. Review of International Economics, 18(5), 849–864.
   Web of Science ®Google Scholar
• Chen, M., Wu, J., Jeon, B. N., & Wang, R. (2017). Monetary policy and bank risk-taking: Evidence from emerging economies. Emerging Markets Review, 31, 116–140. https://doi.org/10.1016/j.ememar.2017.04.001
   Web of Science ®Google Scholar
• Choi, C., & Park, K. (2018). Financial system and housing price. Emerging Markets Finance and Trade, 54(2), 328–335. https://doi.org/10.1080/1540496X.2017.1344832
   Web of Science ®Google Scholar
• Dang, V. D. (2020). The conditioning role of performance on the bank risk-taking channel of monetary policy: Evidence from a multiple-tool regime. Research in International Business and Finance, 54, 101301.
   Web of Science ®Google Scholar
• Dang, V. D., & Dang, V. C. (2021a). Bank diversification and the effectiveness of monetary policy transmission: Evidence from the bank lending channel in Vietnam. Cogent Economics & Finance, 9(1), 1885204. https://doi.org/10.1080/23322039.2021.1885204
   Web of Science ®Google Scholar
• Dang, V. D., & Dang, V. C. (2021b). How do bank characteristics affect the bank liquidity creation channel of monetary policy? Finance Research Letters, 101984. https://doi.org/10.1016/j.frl.2021.101984
   Google Scholar
• Dang, V. D., & Nguyen, K. Q. B. (2020). Monetary policy, bank leverage and liquidity. International Journal of Managerial Finance, 17(4), 619–639. https://doi.org/10.1108/ijmf-06-2020-0284
   Web of Science ®Google Scholar
• Disyatat, P. (2011). The bank lending channel revisited. Journal of Money, Credit and Banking, 43(4), 711–734. https://doi.org/10.1111/j.1538-4616.2011.00394.x
   Web of Science ®Google Scholar
• Ehrmann, M., Gambacorta, L., Martinez‐Pagés, J., Sevestre, P., & Worms, A. (2003). The effects of monetary policy in the euro area. Oxford Review of Economic Policy, 19(1), 58–72.
   Web of Science ®Google Scholar
• Ferreira, C. (2010). The credit channel transmission of monetary policy in the European Union: A panel data approach. Banks & Bank Systems, (5), 230–240.
   Google Scholar
• Fiador, V., Sarpong-Kumankoma, E., & Karikari, N. K. (2022). Monetary policy effectiveness in Africa: The role of financial development and institutional quality. Journal of Financial Regulation and Compliance, 30(3), 335–352. https://doi.org/10.1108/JFRC-03-2021-0024
   Web of Science ®Google Scholar
• Fisman, R., & Love, I. (2003). Trade credit, financial intermediary development, and industry growth. The Journal of Finance, 58(1), 353–374. https://doi.org/10.1111/1540-6261.00527
   Web of Science ®Google Scholar
• Flannery, M. J. (1995). Prudential regulation for banks. In Financial stability in a changing environment (pp. 281–328). Springer.
   Google Scholar
• Freixas, X., & Rochet, J.-C. (2008). Microeconomics of banking. MIT press.
   Google Scholar
• Gambacorta, L. (2005). Inside the bank lending channel. European Economic Review, 49(7), 1737–1759. https://doi.org/10.1016/j.euroecorev.2004.05.004
   Web of Science ®Google Scholar
• Gambacorta, L., & Marques-Ibanez, D. (2011). The bank lending channel: Lessons from the crisis. Economic Policy, 26(66), 135–182. https://doi.org/10.1111/j.1468-0327.2011.00261.x
   Web of Science ®Google Scholar
• Heryán, T., & Tzeremes, P. G. (2017). The bank lending channel of monetary policy in EU countries during the global financial crisis. Economic Modelling, 67, 10–22. https://doi.org/10.1016/j.econmod.2016.07.017
   Web of Science ®Google Scholar
• Hoshi, T., Scharfstein, D., & Singleton, K. J. (2007). Japanese Corporate Investment and Bank of Japan Guidance of Commercial Bank Lending. In Japanese monetary policy (pp. 63–94). University of Chicago Press.
   Google Scholar
• Hou, X., & Wang, Q. (2013). Implications of banking marketization for the lending channel of monetary policy transmission: Evidence from China. Journal of Macroeconomics, 38, 442–451. https://doi.org/10.1016/j.jmacro.2013.07.004
   Web of Science ®Google Scholar
• Huan, N H., Vu, N. M., & Phuc, N. T. (2021). Market structure, state ownership and monetary policy transmission through bank lending channel: Evidence from Vietnamese commercial banks. Economics and Business Letters, 10(3), 164–177. https://doi.org/10.17811/ebl.10.3.2021.164-177
   Web of Science ®Google Scholar
• Hung, L. V., & Pfau, W. D. (2009). VAR analysis of the monetary transmission mechanism in Vietnam. Applied Econometrics and International Development, 9(1), 165–179.
   Google Scholar
• Huynh, T. L. D., Nasir, M. A., Nguyen, S. P., & Duong, D. (2020). An assessment of contagion risks in the banking system using non-parametric and Copula approaches. Economic Analysis and Policy, 65, 105–116. https://doi.org/10.1016/j.eap.2019.11.007
   Web of Science ®Google Scholar
• Ippolito, F., Ozdagli, A. K., & Perez-Orive, A. (2018). The transmission of monetary policy through bank lending: The floating rate channel. Journal of Monetary Economics, 95, 49–71. https://doi.org/10.1016/j.jmoneco.2018.02.001
   Web of Science ®Google Scholar
• Jeon, B. N., & Wu, J. (2014). The role of foreign banks in monetary policy transmission: Evidence from Asia during the crisis of 2008–9. Pacific-Basin Finance Journal, 29, 96–120. https://doi.org/10.2139/ssrn.2386408
   Web of Science ®Google Scholar
• Jimborean, R. (2009). The role of banks in the monetary policy transmission in the new EU member states. Economic Systems, 33(4), 360–375. https://doi.org/10.1016/j.ecosys.2009.08.001
   Google Scholar
• Juurikkala, T., Karas, A., & Solanko, L. (2011). The role of banks in monetary policy transmission: Empirical evidence from Russia. Review of International Economics, 19(1), 109–121. https://doi.org/10.1111/j.1467-9396.2010.00935.x
   Web of Science ®Google Scholar
• Kashyap, A. K., & Stein, J. C. (1995). The impact of monetary policy on bank balance sheets. Paper presented at the Carnegie-Rochester conference series on public policy.
   Google Scholar
• Keeton, W. R. (1979). Equilibrium credit rationing (Garland, New York).
   Google Scholar
• Khan, H. H., Ahmad, R. B., & Gee, C. S. (2016). Bank competition and monetary policy transmission through the bank lending channel: Evidence from ASEAN. International Review of Economics & Finance, 44, 19–39. https://doi.org/10.1016/j.iref.2016.03.003
   Web of Science ®Google Scholar
• Kishan, R. P., & Opiela, T. P. (2006). Bank capital and loan asymmetry in the transmission of monetary policy. Journal of Banking & Finance, 30(1), 259–285. https://doi.org/10.1016/j.jbankfin.2005.05.002
   Web of Science ®Google Scholar
• Krause, S., & Rioja, F. (2006). Financial development and monetary policy efficiency. Emory Economics, 613(158), 100–121.
   Google Scholar
• Leroy, A. (2014). Competition and the bank lending channel in Eurozone. Journal of International Financial Markets, Institutions and Money, 31, 296–314. https://doi.org/10.2139/ssrn.2341669
   Web of Science ®Google Scholar
• Lerskullawat, A. (2017). Effects of banking sector and capital market development on the bank lending channel of monetary policy: An ASEAN country case study. Kasetsart Journal of Social Sciences, 38(1), 9–17. https://doi.org/10.1016/j.kjss.2016.10.001
   Google Scholar
• Levine, R. (2002). Bank-based or market-based financial systems: Which is better? Journal of Financial Intermediation, 11(4), 398–428. https://doi.org/10.3386/w9138
   Web of Science ®Google Scholar
• Mahathanaseth, I., & Tauer, L. W. (2019). Monetary policy transmission through the bank lending channel in Thailand. Journal of Asian Economics, 60, 14–32. https://doi.org/10.1016/j.asieco.2018.10.004
   Web of Science ®Google Scholar
• Matousek, R., & Sarantis, N. (2009). The bank lending channel and monetary transmission in Central and Eastern European countries. Journal of Comparative Economics, 37(2), 321–334. https://doi.org/10.1016/j.jce.2008.09.008
   Web of Science ®Google Scholar
• Milcheva, S. (2013). A bank lending channel or a credit supply shock? Journal of Macroeconomics, 37, 314–332. https://doi.org/10.1016/j.jmacro.2013.03.004
   Web of Science ®Google Scholar
• Mishkin, F. S. (1995). Symposium on the monetary transmission mechanism. Journal of Economic Perspectives, 9(4), 3–10. https://doi.org/10.1257/jep.9.4.3
   Web of Science ®Google Scholar
• Mishra, P., Montiel, P., & Sengupta, R. (2016). Monetary transmission in developing countries: Evidence from India. In Monetary policy in India (pp. 59–110). Springer.
   Google Scholar
• Modugu, K. P., & Dempere, J. (2022). Monetary policies and bank lending in developing countries: Evidence from Sub-Sahara Africa. Journal of Economics and Development, 24(3), 217–229. https://doi.org/10.1108/JED-09-2021-0144
   Google Scholar
• Neuenkirch, M. (2013). Monetary policy transmission in vector autoregressions: A new approach using central bank communication. Journal of Banking & Finance, 37(11), 4278–4285. https://doi.org/10.1016/j.jbankfin.2013.07.044
   Web of Science ®Google Scholar
• Nguyen, D. P., Ho, V. T., & Vo, X. V. (2018). Challenges for Vietnam in the globalization Era. Asian Journal of Law and Economics, 9(1). https://doi.org/10.1515/ajle-2018-0002
   Google Scholar
• Nguyen, H. H., Nguyen, T. P., & Tram Tran, A. N. (2022). Impacts of monetary policy transmission on bank performance and risk in the Vietnamese market: Does the Covid-19 pandemic matter? Cogent Business & Management, 9(1), 2094591. https://doi.org/10.1080/23311975.2022.2094591
   Web of Science ®Google Scholar
• Olivero, M. P., Li, Y., & Jeon, B. N. (2011). Competition in banking and the lending channel: Evidence from bank-level data in Asia and Latin America. Journal of Banking & Finance, 35(3), 560–571. https://doi.org/10.1016/j.jbankfin.2010.08.004
   Web of Science ®Google Scholar
• Perera, A., Ralston, D., & Wickramanayake, J. (2014). Impact of off-balance sheet banking on the bank lending channel of monetary transmission: Evidence from South Asia. Journal of International Financial Markets, Institutions and Money, 29, 195–216. https://doi.org/10.1016/j.intfin.2013.12.008
   Web of Science ®Google Scholar
• Pham, D. K., Ngo, V. M., Nguyen, H. H., & Le, T. L. V. (2021). Financial crisis and diversification strategies: The impact on bank risk and performance. Economics and Business Letters, 10(3), 249–261. https://doi.org/10.17811/ebl.10.3.2021.249-261
   Web of Science ®Google Scholar
• Rashid, A., Hassan, M. K., & Shah, M. A. R. (2020). On the role of Islamic and conventional banks in the monetary policy transmission in Malaysia: Do size and liquidity matter? Research in International Business and Finance, 52, 101123. https://doi.org/10.1016/j.ribaf.2019.101123
   Web of Science ®Google Scholar
• Rybczynski, T. M. (1997). A new look at the evolution of the financial system. In The recent evolution of financial systems (pp. 3–15). Springer.
   Google Scholar
• Sanfilippo-Azofra, S., Torre-Olmo, B., Cantero-Saiz, M., & López-Gutiérrez, C. (2018). Financial development and the bank lending channel in developing countries. Journal of Macroeconomics, 55, 215–234. https://doi.org/10.1016/j.jmacro.2017.10.009
   Web of Science ®Google Scholar
• Scharler, J. (2008). Bank lending and the stock market’s response to monetary policy shocks. International Review of Economics & Finance, 17(3), 425–435.
   Web of Science ®Google Scholar
• Shen, L. (2013). Financial dependence and growth: Diminishing returns to improvement in financial development. Economics Letters, 120(2), 215–219. https://doi.org/10.1016/j.econlet.2013.04.018
   Web of Science ®Google Scholar
• Singh, S., Razi, A., Endut, N., & Ramlee, H. (2008). Impact of financial market developments on the monetary transmission mechanism. Bank of International Settlement, 39, 49–99. https://ssrn.com/abstract=1191102
   Google Scholar
• Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. The American Economic Review, 71(3), 393–410.
   Web of Science ®Google Scholar
• Townsend, R. M. (1979). Optimal contracts and competitive markets with costly state verification. Journal of Economic Theory, 21(2), 265–293. https://doi.org/10.1016/0022-0531(79)
   Web of Science ®Google Scholar
• Vo, X. V., & Nguyen, P. C. (2014). Monetary policy and bank credit risk in Vietnam pre and post Global Financial Crisis. In Risk Management Post Financial Crisis: A Period of Monetary Easing. Emerald Group Publishing Limited.
   Google Scholar
• Vo, X. V., & Nguyen, P. C. (2017). Monetary policy transmission in Vietnam: Evidence from a VAR approach. Australian Economic Papers, 56(1), 27–38. https://doi.org/10.1111/1467-8454.12074
   Web of Science ®Google Scholar
• Wei, X., & Han, L. (2021). The impact of COVID-19 pandemic on transmission of monetary policy to financial markets. International Review of Financial Analysis, 74, 101705. https://doi.org/10.1016/j.irfa.2021.101705
   PubMed Web of Science ®Google Scholar
• Wu, J., Chen, L., Chen, M., & Jeon, B. N. (2020). Diversification, efficiency and risk of banks: Evidence from emerging economies. Emerging Markets Review, 45, 100720. https://doi.org/10.1016/j.ememar.2020.100720
   Web of Science ®Google Scholar
• Wu, J., Luca, A. C., & Jeon, B. N. (2011). Foreign bank penetration and the lending channel in emerging economies: Evidence from bank-level panel data. Journal of International Money and Finance, 30(6), 1128–1156. https://doi.org/10.1016/j.jimonfin.2011.05.011
   Web of Science ®Google Scholar
• Yang, J., & Shao, H. (2016). Impact of bank competition on the bank lending channel of monetary transmission: Evidence from China. International Review of Economics & Finance, 43, 468–481. https://doi.org/10.1016/j.iref.2015.12.008
   Web of Science ®Google Scholar
• Zhan, S., Tang, Y., Li, S., Yao, Y., & Zhan, M. (2021). How does the money market development impact the bank lending channel of emerging Countries? A case from China. The North American Journal of Economics and Finance, 57, 101381. https://doi.org/10.1016/j.najef.2021.101381
   Web of Science ®Google Scholar
• Zulkhibri, M. (2013). Bank-characteristics, lending channel and monetary policy in emerging markets: Bank-level evidence from Malaysia. Applied Financial Economics, 23(5), 347–362. https://doi.org/10.1080/09603107.2012.725927
   Google Scholar