Bank Lending Channel and Monetary Policy in Nigeria
We find that the Central Bank of Nigeria's (CBN) policy of consolidation and restructuring from 2002 to 2008 strengthened the bank lending channel (BLC). We use the Generalised Method of Moments (GMM) two step estimator to test the existence of the BLC using a sample of 23 banks.Our results show that the loan growth is more sensitive to changes in bank size and capitalization. Furthermore, the central bank's restructuring activities improved the impact of the BLC.
Citation:Matousek, R. and Solomon, H. (2017) Bank Lending Channel and Monetary Policy in Nigeria. Research in International Business and Finance, online first