The presence of the bank lending channel and the bank capital channel in selected Philippine universal and commercial banks

• Main Authors: Camara, Carissa Marie E., Santos, Emeryne Joy L., Zhang, Qi
• Format: text
• Language: English
• Published: Animo Repository 2008
• Subjects: Banks and banking > Philippines; Bank loans > Philippines; Monetary policy > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/17479
• Institution: De La Salle University

Using a quarterly dataset of selected Philippine Universal and Commercial banks from the period 2002 to 2007, this paper analyzes the role of bank capitalization on the transmission of monetary policy. It also evaluates the impact of capital adequacy requirements on the transmission mechanism. An understanding of the role banks play in the monetary transmission mechanism is critical for central bankers to effectively implement monetary policy and accomplish monetary policy goals. The researchers find evidence for the existence of the bank lending channel and the bank capital channel under different scenarios of capital adequacy regulations.