The bank lending channel in Peru: a VECM approach

Authors

DOI:

https://doi.org/10.15381/pc.v24i2.17455

Keywords:

Error correction model, bank lending channel, monetary policy

Abstract

It seeks to determine the existence of the bank loan channel in national and foreign currency for Peru during the period from the first quarter of 2010 to the first quarter of 2019. To achieve this objective, time series are used in correction models of VECM errors, following the relationship of a theoretical IS-LM model with the banking sector. Evidence is found that the bank loan channel in national currency would be operating. In turn, foreign exchange reserve funds are good long-term predictors of the level of foreign currency credits, however there is no credit channel in that currency. This research serves to clarify the mechanism of transmission of monetary policy through credit towards economic activity. In addition, it is useful for the design and application of monetary policy. Finally, this is the first paper to use the VECM methodology to study the bank loan channel in Peru.

Jel Classification: E51; E52; E58.

Author Biography

  • Paul Christian Espinoza Ipanaque, Instituto de Formación Bancaria IFB Certus

    Economista, Universidad Nacional del Callao, Callao, Perú. Egresado de la maestría en economía con mención en finanzas, Universidad Nacional Mayor de San Marcos, Lima, Perú. Profesor e Investigador del Instituto de Formación Bancaria IFB Certus, Lima, Perú.

Downloads

Published

2020-01-02

Issue

Vol. 24 No. 2 (2019)

Section

Artículos

License

Copyright (c) 2020 Paul Christian Espinoza Ipanaque

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

THE AUTHORS RETAIN THEIR RIGHTS:

a. The authors retain their trademark and patent rights, and also on any process or procedure described in the article.

b. The authors retain the right to share, copy, distribute, execute and publicly communicate the article published in Pensamiento Crítico (for example, place it in an institutional repository or publish it in a book), with recognition of its initial publication in Pensamiento Crítico.

c. The authors retain the right to make a subsequent publication of their work, to use the article or any part of it (for example: a compilation of their works, notes for conferences, thesis, or for a book), provided they indicate the source of publication (authors of the work, journal, volume, number and date).

How to Cite

The bank lending channel in Peru: a VECM approach. (2020). Pensamiento Crítico, 24(2), 101-134. https://doi.org/10.15381/pc.v24i2.17455