Bank competition and monetary policy transmission through the bank lending channel: Evidence from ASEAN

We examine the role of bank competition for the transmission of monetary policy through the bank lending channel. We also consider the extent to which banks' characteristics – i.e. size, capitalization and liquidity – affect the banks' response to monetary policy shocks. We apply two structural and two non-structural indices to assess the level of competition. The two-step system GMM dynamic panel estimator is applied to bank level data from...