Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market
International Journal of Business and Economics Research
Volume 6, Issue 1, February 2017, Pages: 1-6
Received: Dec. 31, 2016; Accepted: Jan. 12, 2017; Published: Feb. 6, 2017
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Author
Buthina M. A. Muhtaseb, Department of Economics, Business School, University of Jordan, Amman, Jordan
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Abstract
We examine the symmetric and asymmetric interest rate pass-through under the fixed exchange rate system in Lebanon using monthly data from 1998:01 to 2016:06. Employing the Johansen cointegration approach, it is found that the pass-through in Lebanon is overshooting, which could be attributed to information asymmetries in the market. Furthermore, the asymmetric behavior of the commercial banks has been investigated by applying the methodology developed by Enders and Chumrusphonlert (2004). The results show that the interest rate on loans responds differently to monetary policy shocks.
Keywords
Interest Rate, Pass-Through, Information Asymmetry, Lebanon
To cite this article
Buthina M. A. Muhtaseb, Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market, International Journal of Business and Economics Research. Vol. 6, No. 1, 2017, pp. 1-6. doi: 10.11648/j.ijber.20170601.11
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Copyright © 2017 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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