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Abstract

This article examines a credit channel of the monetary policy transmission mechanism in India. One hundred thirty-two commercial banks in India were studied for ten years, from 2009 to 2018, using STATA for data analysis. The question of this study is: do bank features and macroeconomic variables combine to influence credit supply in India? According to the data, the bank's features have a large and negative liquidity ratio compared to the loan amount. Furthermore, there is a significant but negative relationship between the interaction of inflation and interest rates with the liquidity ratio and loan amount in India.

Keywords

loan supply monetary policy transmission mechanism panel data India

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How to Cite
Farajnezhad, M., Idrus, D., & Shehni Karam Zadeh, M. (2022). New evidence on credit channel of monetary policy transmission in India. Future Technology, 1(1), 14–25. Retrieved from https://fupubco.com/futech/article/view/12
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