Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market

Buthina M. A. Muhtaseb

doi:doi:10.11648/j.ijber.20170601.11

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Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market

Buthina M. A. Muhtaseb

Published in International Journal of Business and Economics Research (Volume 6, Issue 1)

Received: 31 December 2016 Accepted: 12 January 2017 Published: 6 February 2017

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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.

Published in	International Journal of Business and Economics Research (Volume 6, Issue 1)
DOI	10.11648/j.ijber.20170601.11
Page(s)	1-6
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Interest Rate, Pass-Through, Information Asymmetry, Lebanon

References

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Buthina M. A. Muhtaseb. (2017). Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market. International Journal of Business and Economics Research, 6(1), 1-6. https://doi.org/10.11648/j.ijber.20170601.11

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Buthina M. A. Muhtaseb. Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market. Int. J. Bus. Econ. Res. 2017, 6(1), 1-6. doi: 10.11648/j.ijber.20170601.11

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AMA Style

Buthina M. A. Muhtaseb. Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market. Int J Bus Econ Res. 2017;6(1):1-6. doi: 10.11648/j.ijber.20170601.11

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@article{10.11648/j.ijber.20170601.11,
  author = {Buthina M. A. Muhtaseb},
  title = {Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market},
  journal = {International Journal of Business and Economics Research},
  volume = {6},
  number = {1},
  pages = {1-6},
  doi = {10.11648/j.ijber.20170601.11},
  url = {https://doi.org/10.11648/j.ijber.20170601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20170601.11},
  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.},
 year = {2017}
}

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TY  - JOUR
T1  - Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market
AU  - Buthina M. A. Muhtaseb
Y1  - 2017/02/06
PY  - 2017
N1  - https://doi.org/10.11648/j.ijber.20170601.11
DO  - 10.11648/j.ijber.20170601.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 1
EP  - 6
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20170601.11
AB  - 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.
VL  - 6
IS  - 1
ER  -

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Author Information

Buthina M. A. Muhtaseb

Department of Economics, Business School, University of Jordan, Amman, Jordan

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Buthina M. A. Muhtaseb. (2017). Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market. International Journal of Business and Economics Research, 6(1), 1-6. https://doi.org/10.11648/j.ijber.20170601.11

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ACS Style

Buthina M. A. Muhtaseb. Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market. Int. J. Bus. Econ. Res. 2017, 6(1), 1-6. doi: 10.11648/j.ijber.20170601.11

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AMA Style

Buthina M. A. Muhtaseb. Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market. Int J Bus Econ Res. 2017;6(1):1-6. doi: 10.11648/j.ijber.20170601.11

Copy | Download

@article{10.11648/j.ijber.20170601.11,
  author = {Buthina M. A. Muhtaseb},
  title = {Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market},
  journal = {International Journal of Business and Economics Research},
  volume = {6},
  number = {1},
  pages = {1-6},
  doi = {10.11648/j.ijber.20170601.11},
  url = {https://doi.org/10.11648/j.ijber.20170601.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20170601.11},
  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.},
 year = {2017}
}

Copy | Download

TY  - JOUR
T1  - Interest Rate Pass-Through and Monetary Transmission in Lebanon Loan Market
AU  - Buthina M. A. Muhtaseb
Y1  - 2017/02/06
PY  - 2017
N1  - https://doi.org/10.11648/j.ijber.20170601.11
DO  - 10.11648/j.ijber.20170601.11
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 1
EP  - 6
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20170601.11
AB  - 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.
VL  - 6
IS  - 1
ER  -

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