Saved Papers

Save papers so you can find them more easily!

Join Now

Get instant access to over 100,000 papers.

Join Now!

Impacts Of Monetary Policy Shocks On The Domestic And Foreign Banks In Malaysia

IMPACTS OF MONETARY POLICY SHOCKS ON THE DOMESTIC AND FOREIGN BANKS IN MALAYSIA

Salina Hj Kassim
Turkhan Ali Abdul Manap

Department of Economics
Kulliyyah of Economics and Management Sciences
International Islamic University Malaysia
Jalan Gombak
53100 Kuala Lumpur

ABSTRACT

This study investigates the impact of monetary policy shocks on bank loans extended by local banks and foreign banks in Malaysia over the period from January 1991 to December 2006. It adopts the impulse response functions and the variance decomposition analysis to study the responses of these types of lending to monetary policy shocks. The study finds that foreign banks do not react negatively to monetary policy shock, supporting the view that foreign banks in Malaysia do not abandon the domestic market in times of economic distress. The different responses of the balance sheet items of these banks have several important implications, particularly on monetary policy implementation and risk......


View the rest of this paper...

Approximate Word Count: 5150
Approximate Pages: 21 (250 words per double-spaced page)

Why should you join Frat Files?

  • - It's safe, secure, and private.
  • - Instant access to over 100,000 papers. New papers are added hourly.
  • - Fast and reliable customer support.

Credit Card

PayPal

Bank Account

Similar Essays

  1. Impacts Of Monetary Policy Shocks On The Domestic And Foreign...

    Impacts Of Monetary Policy Shocks On The Domestic And Foreign Banks In Malaysia IMPACTS OF MONETARY POLICY SHOCKS ON THE DOMESTIC AND FOREIGN BANKS IN MALAYSIA Salina Hj Kassim

  2. Monetary Policy

    exchange rate movements, overall macroeconomic fundamentals and the current state of domestic prices. In preparing its latest policy, the RBI has had to accommodate

  3. Financial Crisis: How And Why It Happens

    For example: Indonesia and Malaysia Financial linkages: For example: Exposure of Japanese banks in SE Asia Financial linkages between Malaysia and Singapore Perceived linkages

  4. Tsunami Disaster, Implication On Economy

    on their economies. Early estimates show that it would be about 0.25 per cent of gross domestic product. The International Monetary Fund (IMF) forecast on February 3, 2005 that

  5. Shaheen Air International

    mounting inflationary pressures, many central banks around the world tightened their monetary policy during 2005 and 2006. DOMESTIC SCENARIO While Pakistan's economy also