Bank heterogeneity and monetary policy response: Evidence from the emerging market economies
Abhay Raghuvanshi  1@  
1 : Indian Institute of Technology Kanpur India

The paper investigates the bank lending channel of monetary transmission in emerging market economies using panel data for commercial banks between 2014 and 2023 for the emerging market economies, by looking at the factors that affect the bank's loan supply, such as monetary policy changes and bank balance sheet characteristics. We look at how bank-specific characteristics are essential in determining the lending sensitivity of commercial banks in emerging economies. The heterogeneous bank characteristics and macroeconomic indicators significantly determine bank lending. The operation of the bank lending channel of monetary transmission works through the factors that affect the loan supply decision by commercial banks, which in turn impact the real economy.


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