02033cas a2200253 a 4500 AALejournalIMF013335 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475525717 1018-5941 BD-DhAAL BD-DhAAL Saborowski, Christian. Assessing the Determinants of Interest Rate Transmission Through Conditional Impulse Response Functions / Christian Saborowski, Sebastian Weber. Washington, D.C. : International Monetary Fund, 2013. 1 online resource (37 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We employ a structural panel VAR model with interaction terms to identify determinants of effective transmission from central bank policy rates to retail lending rates in a large country sample. The framework allows deriving country specific pass-through estimates broken down into the contributions of structural country characteristics and policies. The findings suggest that industrial economies tend to enjoy a higher pass-through largely on account of their more flexible exchange rate regimes and their more developed financial systems. The average pass-through in our sample increased from 30 to 60 percent between 2003 and 2008, mainly due to positive risk sentiment, rising inflation and increasingly diversified banking sectors. The crisis reversed this trend partly as banks increased precautionary liquidity holdings, non-performing loans proliferated and inflation moderated. Mode of access: Internet Weber, Sebastian. IMF Working Papers; Working Paper ; No. 2013/023 Full text available on IMF http://elibrary.imf.org/view/journals/001/2013/023/001.2013.issue-023-en.xml IMF e-Library