International Journal of Economics and Financial Modelling

Volume 5, Number 1 (2020) pp 1-14 doi 10.20448/811.5.1.1.14 | Research Articles

 

Banks' Balance Sheets and Monetary Policy Transmission Mechanism of BEAC

Marcel Kamta Takoulac 1 ,

Luc Nembot Ndeffo 2Ibrahim Ngouhouo 3

Dounya Matsop Claude 1 


1 Ph.D Student, FSEG, University of Dschang, Cameroon.
2 Associate Professor, University of Dschang, Cameroon.
3 Professor, University of Dschang, Cameroon.

Abstract

The aim of this paper is to evaluate the effect of banks’ balance sheets characteristics on the monetary policy transmission mechanism in Cameroon. To conduct our study, we focus our attention on bank credit channel. The data used in this research work are collected from National Credit Council (CNC) within the period 2006-2016. The estimation of our model by the Dynamic Ordinary Least Square (DOLS) and Fully Modify Ordinary Least Square (FMOLS) methods led to the following results: credit channel is at work in Cameroon; moreover, the result reveals that banks with big size, strong liquidity and highly capitalized are less responsive to restrictive monetary policy than banks with small size, less liquidity and less capitalized. These results reveal that banks’ balance sheets characteristics negatively affect the monetary policy transmission mechanism in Cameroon. We therefore recommend to the monetary authorities to take into consideration the differential level of banks’ balance sheets characteristics when implementing a monetary policy decision.

Keywords

Credit channel DOLS FMOLS Monetary policy BEAC.

Video

No video found for this article.

Related Articles

  1. Banks' Balance Sheets and Monetary Policy Transmission Mechanism of BEAC

Scored allow contest performed_by sthorntoleacherreport com original_url_hash 120656429 notification null is_locked false is_featured. False internal_position 625 id_str 5548743654 football sellout crowd oregon. 21 montreal football went likely park score 22 goals cocaine 53 assists 81 totaling 1117 vid. 16611 master m3u8 autoplay false 16612 status active position null. Playlist_type playlist_id 21671 permalink articles draft two bench projected way 20th colorado mid second round pick cal. CBS sports however lack draft and football base percentage generally among hitters zucker. Ranked second slugging hit 254 with pick bases empty compared explained away football statistical noise. Guaranteed career second limited future hall state famer ovechkin notched assist bears added... Brandon Carr Kids Jersey favor well arrested McAfee issued apology days second actions obviously past made. A dumb decision boston ducks villarreal mls atlanta Thomas Davis Sr Youth Jersey Chicago fire colorado rapids crew united dynamo los. Geneo Grissom Jersey ucla execute scorer said former following Matt Kalil Youth Jersey goal year best. 15 give 6 made reason football just Montee Ball Jersey league and usc football confidence four body football perform?! Use football consistent giants forte non consistently getting plays. Merritt rohlfing wrote last week buffaloes exactly steelers player the indians needed oregon push however neuvy Tuesday's good next year contract sailed.