The bank-lending channel of monetary policy transmission in a dual banking system: empirical evidence from panel VAR modeling

References

• Abrigo, M. R. M., & Love, I. (2016). Estimation of panel vector autoregression in Stata. The Stata Journal, 16(3), 778–24. https://doi.org/10.1177/1536867X1601600314
   Web of Science ®Google Scholar
• Al-Darwish, A., Alghaith, N., Behar, A., Callen, T., Deb, P., Hegazy, A., Khandelwal, P., Pant, M., & Qu, H. (2015). Monetary and macroprudential policies in Saudi Arabia: tackling emerging economic challenges to sustain strong growth. Washington, DC: International Monetary Fund.
   Google Scholar
• Algahtani, G. (2016). The effect of oil price shocks on economic activity in Saudi Arabia: econometric approach. International Journal of Business and Management, 11(8), 124–133. https://doi.org/10.5539/ijbm.v11n8p124
   Google Scholar
• Alghaith, N., Al-Darwish, A., Deb, P., & Khandelwal, P. (2015). Monetary and macroprudential policies in Saudi Arabia, in the Saudi Arabia: tackling emerging economic challenges to sustain growth. In Middle East and Central Asia departmental paper series (pp. 37–59).Washington, DC: International Monetary Fund.
   Google Scholar
• Aysan, A. F., Disli, M., & Ozturk, H. (2018). Bank lending channel in a dual banking system: why are Islamic banks so responsive? World Economy, 411 , 674–698. https://doi.org/10.1111/twec.12507
   Web of Science ®Google Scholar
• Ben Amar, A., Hachicha, N., & Saadallah, R. (2015). The effectiveness of monetary policy transmission channels in the presence of Islamic banks: the case of Saudi Arabia. International Journal of Business, 20(3), 1083–4346. https://ijb.cyut.edu.tw/var/file/10/1010/img/861/V203-4.pdf
   Google Scholar
• Bernanke, B. S., & Blinder, A. S. (1988). Credit, money and aggregate demand. American Economic Review, 78(2), 435–439. https://doi.org/10.4236/jmf.2018.82017
   Web of Science ®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/10.1257/jep.9.4.27
   Web of Science ®Google Scholar
• Boukhatem, J., & Djelassi, M. (2020a). Liquidity risk in the Saudi banking system: is there any Islamic banking specificity? The Quarterly Review of Economics and Finance, 77(C), 206–219. https://doi.org/10.1016/j.qref.2020.05.002
   Web of Science ®Google Scholar
• Boukhatem, J., & Djelassi, M. (2020b). The risk-sharing paradigm in islamic financial system: myth or reality? In S. Goutte & G. K.Ed. Risk factors and contagion in commodity markets and stocks markets. 161–196. World scientific Publishing. chap. 7.
   Google Scholar
• Brandt, P. T., & Williams, J. T. (2007). Multiple time-series models. Sage Publications.
   Google Scholar
• Brooks, P. K. 2007. “The bank lending channel of monetary transmission: does it work in Turkey?” Working Paper no. 07/272, International Monetary Fund, Washington, DC.
   Google Scholar
• Caporale, G. M., Çatık, A. N., Helmi, M. H., Ali, F. M., & Tajik, M. (2020). The bank lending channel in the Malaysian Islamic and conventional banking system. Global Finance Journal, 45(C), 1–26. https://doi.org/10.1016/j.gfj.2019.100478
   Google Scholar
• Cecchetti, S. (1995). Distinguishing theories of the monetary transmission mechanism. Federal Reserve Bank of St Louis Economic Review, 77(3), 83–97. https://fraser.stlouisfed.org/title/820/item/24578/toc/500922
   Google Scholar
• Cevik, S., & Teksöz, K., 2012. Lost in transmission? The effectiveness of monetary policy transmission channels in the GCC countries. IMF Working Papers, WP/12/191.
   Google Scholar
• Chong, B. S., & Liu, M. H. (2009). Islamic banking: Interest-free or interest-based? Pacific-Basin Finance Journal, 17(1), 125–144. https://doi.org/10.1016/j.pacfin.2007.12.003
   Web of Science ®Google Scholar
• Christiano, L. J., & Eichenbaum, M. (1992). Current real-business-cycle: Theories and aggregate labor-market fluctuations. The American Economic Review, 82(3), 430–450.
   Web of Science ®Google Scholar
• Cottarelli, C., & Kourelis, A. (1994). Financial Structure, Bank Lending Rates, and the Transmission Mechanism of Monetary Policy. Staff Papers (International Monetary Fund), 41(4), 587–623. https://doi.org/10.2307/3867521
   Google Scholar
• Espinoza, R., & Prasad, A., 2012. Monetary policy transmission in the GCC countries. IMF Working Paper. International Monetary Fund, WP/12/132.
   Google Scholar
• Holtz-Eakin, D., Newey, W., & Rosen, H. S. (1988). Estimating vector autoregressions with panel data. Econometrica, 56(6), 1371–1395. https://doi.org/10.2307/1913103
   Web of Science ®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
• Kader, R. A., & Leong, Y. K. (2009). The impact of interest rate changes on islamic bank financing. International Review of Business Research Papers, 5(3), 189–201. https://mpra.ub.uni-muenchen.de/100644/1/MPRA_paper_100644
   Google Scholar
• Kashyap, A. K., & Stein, J. C. (2000). What do a million observations on banks say about the transmission of monetary policy? American Economic Review, 90(3), 407–428. https://doi.org/10.1257/aer.90.3.407
   Web of Science ®Google Scholar
• Kasri, R., & Kassim, S. (2009). Empirical determinants of saving in the Islamic banks: evidence from Indonesia. JKAU: Islamic Economics, 22(2), 181–201. https://doi.org/10.4197/islec.22-2.7
   Google Scholar
• Kassim, S., Majdi, A. S., & Yusof, R. M. (2009). Impact of monetary policy shocks in the conventional and Islamic banks in a dual banking system: evidence from Malaysia. Journal of Economic Cooperation and Development, 30(1) , 41–58. http://irep.iium.edu.my/id/eprint/19850
   Google Scholar
• Khatat, M. E. H., 2016. Monetary policy in the presence of Islamic banking. IMF Working Paper. International Monetary Fund, WP/16/72.
   Google Scholar
• Levin, A., Lin, C. F., & Chu, J. (2002). Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1–24. https://doi.org/10.1016/S0304-4076(01)00098-7
   Web of Science ®Google Scholar
• Love, I., & Zicchino, L. (2006). Financial development and dynamic investment behavior: Evidence from panel VAR. The Quarterly Review of Economics and Finance, 46(2), 190–210. https://doi.org/10.1016/j.qref.2005.11.007
   Google Scholar
• Maddala, G. S., & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61(S1), 631–652. https://doi.org/10.1111/1468-0084.0610s1631
   Google Scholar
• Mishkin, F. (1995). Symposium on the monetary transmission mechanism. The Journal of Economic Perspectives, 9(4), 3–10. https://doi.org/10.1257/jep.9.4.3
   Web of Science ®Google Scholar
• Miyajima, K., 2017. What influences bank lending in Saudi Arabia? Working Paper no. 17/31, International Monetary Fund, Washington, DC.
   Google Scholar
• Norman, R., Swanson, C., & W.j. (1997). Granger impulse response functions based on a causal approach to residual orthogonalization in vector autoregressions. Journal of the American Statistical Association, 92(437), 357–367. https://doi.org/10.1080/01621459.1997.10473634
   Web of Science ®Google Scholar
• Prasad, A., & Khamis, M. (2011). Monetary policy and the transmission mechanism in the GCC countries. In Gulf cooperation council countries: enhancing economic outcomes in an uncertain global economy (pp. 47–63). International Monetary Fund.
   Google Scholar
• Rafay, A., & Farid, S. (2019). Islamic banking system: A credit channel of monetary policy – evidence from an emerging economy. Economic Research Journal, 32(1), 742–754.
   Google Scholar
• Rama, A., & Kassim, S. (2013). Analyzing determinants of assets and liabilities in Islamic banks: evidence from Indonesia. Review of Islamic Economics, Finance, and Banking, 1(1), 34–53. https://www.iqtishadconsulting.com/assets/media/file/file-analyzing-determinants-of-assets-and-liabilities-in-islamic-banks-evidence-from-indonesia.pdf
   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(C), 101123. https://doi.org/10.1016/j.ribaf.2019.101123
   Web of Science ®Google Scholar
• Wang, R., & Luo, H. (2020). Oil prices and bank credit in MENA countries after 2008 financial crisis. International Journal of Islamic and Middle Eastern Finance and Management, 13(2), 219–247. https://doi.org/10.1108/IMEFM-03-2019-0103
   Web of Science ®Google Scholar
• Westelius, N. J., 2013. External linkages and policy constraints in Saudi Arabia. IMF Working Paper. International Monetary Fund, WP/13/59.
   Google Scholar
• Zaheer, S., Ongena, S., & Van Wijnbergen, S. J. G. (2013). The transmission of monetary policy through conventional and Islamic banks. International Journal of Central Banking, 9(4), 175–224. https://www.ijcb.org/journal/ijcb13q4a6.pdf
   Web of Science ®Google Scholar
• Ziaei, S. M. (2012). Transmission mechanisms of monetary policy in Saudi Arabia: evidence from SVAR analysis. Journal of Modern Accounting and Auditing, 7(8), 990–1012. https://doi.org/10.17265/1548-6583/2012.07.007
   Google Scholar