Exploring the Determinants of Private Sector Credit in Pakistan: A Sectoral Analysis.

• Autorzy: Junaid Kamal , Sayed Irshad Hussain
• Języki publikacji: EN

Abstrakty

EN

This study empirically explores the existence of any cross-sector differences in bank lending behaviour in Pakistan. A wider set of both demand- and supply-side variables are included, and the ARDL model is employed to estimate the results. The empirical findings confirm that significant cross-sector differences regarding the impact of different variables on private sector credit exist in the short run. Moreover, in the long run, the impact of various factors on credit to the private sector are the same across sectors. While domestic deposits positively inf lu-ence credit, non-performing loans have a negative effect on credit. Interest rate has no significant effect on credit in either the short or long term. Lastly, government borrow-ing from commercial banks crowds out the private sec-tor. The findings point towards a weaker transmission of monetary policy through the credit channel and support the idea that the availability of funds is more important for private sector credit penetration in a country such as Pakistan with limited resources, whereby effective policy measures are needed to stimulate savings in the economy.(author's abstract)(original abstract)

Słowa kluczowe

EN

Money supply; Credit; Private sector

PL

Podaż pieniądza; Kredyt; Sektor prywatny

• Czasopismo: Forum Scientiae Oeconomia
• Rocznik: 2023
• Tom: 11
• Numer: nr 2
• Strony: 147--159

Twórcy

autor

Junaid Kamal

• Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Karachi, Pakistan

autor

Sayed Irshad Hussain

• Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Karachi, Pakistan

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Identyfikatory

DOI

10.23762/FSO_VOL11_NO2_7