THE SCIENTIFIC AND THEORETICAL VIEWS OF SCIENTISTS ON THE TRANSMISSION MECHANISM BANK CREDIT CHANNEL

Abstract

GMCaporale andothers dieIn their articles, the transmission mechanism of
monetary policy through the bank lending channel was studied based on the
statistical data of the period 1994:M01-2015:M06 in the case of two different
banking systems in Malaysia, i.e., Islamic and traditional banks. To account for
possible uncertainties in the relationship between bank lending and monetary
policy transmission, two-mode marginal vector autoregression (Two-regime
threshold vectorautoregression – VAT)model was used. According to the results of
the analysis, regardless of growth or decline in the economy, the monetary policy
has less influence on changes in the percentage of Islamic loans of the lending
channel of the transmission mechanism than conventional loans. But, they say, in
recent years the response of Islamic loans to the monetary policy lending channel
has come closer to that of conventional bank loans. Also, through scientific
research, shocks in the percentage of Islamic loans in the period of low economic
growth have a positive effect on the economy and play an important role in causing
economic growth. In our opinion, these results can be explained by the specific
characteristics of Islamic banks