Bank lending, expenditure components and inflation in South Africa: assessment from bounds testing approach

Central Bank Lending, Inflation and Output Dynamics in a Limited Participation Model

This paper seeks to evaluate the effects of expansionary monetary policy by the central bank on inflation, output and employment in a limited-participation model for different parameters value of inter-temporal elasticity of substitution and the Frisch (inverse of the labor supply) elasticity. To this end, a modified cash in advance model in line with Lucas (1990), Christiano (1991) and F...

Capital Ratios and Bank Lending: A Matched Bank Approach

We thank staffs of the Board of Governors of the Federal Reserve and of the Federal Reserve Bank of New York, participants at the Federal Reserve System applied microeconomics conference, the Federal Deposit Insurance Corporation Annual Bank Research Conference and seminar participants at Villanova University for valuable comments. The views presented in this paper are solely those of the autho...

A Critique of Inflation Targeting and An Alternative Proposal for the Reserve Bank of South Africa

SMEs and Bank Lending Relationships:

This paper studies the impact of bank mergers on firm-bank lending relationships using information from individual loan contracts in Belgium. We analyse the effects of bank mergers on the probability of borrowers maintaining their lending relationships and on their ability to continue tapping bank credit. The Belgian financial environment reflects a number of interesting features: high banking ...

Bank Deposits and Relationship Lending∗

I study the role of deposit accounts in bank-firm lending relationships, using a dataset with detailed information about all Norwegian firms’ bank deposit and loan account balances. I show that firms are more likely to increase borrowing from a bank where they hold deposit accounts, and less likely to end the lending relationship. In regressions with both firm and bank fixed effects, I find tha...