International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

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 Volume 8, Issue 2 (February 2021), Pages: 85-91

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 Original Research Paper

 Title: Bank competition and the credit channel of monetary policy: Evidence from an emerging country

 Author(s): Pham Thi Ha An 1, Le Dinh Hac 2, Le Hoang Anh 3, *

 Affiliation(s):

 1Faculty of Finance and Banking, Van Lang University, 45 Nguyen Khac Nhu Street, Co Giang ward, District 1, Ho Chi Minh City, Vietnam
 2Faculty of Postgraduate Education, Banking University of Ho Chi Minh City, Ho Chi Minh City, Vietnam
 3Institute for Research Science and Banking Technology, Banking University of Ho Chi Minh City, Ho Chi Minh City, Vietnam

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 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0000-0002-9670-2060

 Digital Object Identifier: 

 https://doi.org/10.21833/ijaas.2021.02.012

 Abstract:

Our study provides one of the first examinations in an emerging country on the credit channel of monetary policy transmission under the influence of competition. The study was conducted using a panel data of 30 joint-stock commercial banks in Vietnam in the period of 2008-2017. By applying the DGMM estimation method, we found that the existence of the influence of competition on monetary policy transmission through credit channels. The higher bank competitiveness will make monetary policy transmission via credit channels of commercial banks less effective. Large-scale commercial banks, because of a merger or equity increase, will increase their competitiveness because of increased market share, which will weaken the monetary policy transmission through credit channels. The estimation results from the two methods of competitiveness measurement-the Lerner index and the Boone index–are in a united direction but at different levels. 

 © 2020 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords: Monetary policy, Credit channels, DGMM method

 Article History: Received 1 August 2020, Received in revised form 8 October 2020, Accepted 8 October 2020

 Acknowledgment:

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

  An PTH, Hac LD, and Anh LH (2021). Bank competition and the credit channel of monetary policy: Evidence from an emerging country. International Journal of Advanced and Applied Sciences, 8(2): 85-91

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 Tables

 Table 1 Table 2 Table 3 Table 4 

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