Transparency in central bank and credit expansion : empirical evidence from Asian countries

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Jeris, Saeed Sazzad and Ibrahim, Omar Bari Md. and Chowdhury, Ferdous Ahmed and Begum, Humaira (2024) Transparency in central bank and credit expansion : empirical evidence from Asian countries. Journal of Central Banking Theory and Practice, 13 (3). pp. 271-289. ISSN 2336-9205 (https://doi.org/10.2478/jcbtp-2024-0030)

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Abstract

This research investigated the influence of central bank transparency on credit expansion in 15 Asian nations (both advanced and emerging) during the period from 2000 to 2019. Panel OLS and Dynamic GMM estimation are used to identify the impact of central bank transparency on the credit spread. The findings indicate that central bank transparency plays a crucial role in lowering credit spreads and facilitating credit expansion. In addition, the influence of central bank transparency on credit spreads has a greater effect in emerging economies than in developed economies, highlighting the significance of transparency for tackling information asymmetry within the credit system. Overall, the research highlights the significance of central bank independence in reducing knowledge disparities and promoting a more transparent credit environment.

ORCID iDs

Jeris, Saeed Sazzad ORCID logoORCID: https://orcid.org/0000-0001-9656-385X, Ibrahim, Omar Bari Md., Chowdhury, Ferdous Ahmed and Begum, Humaira;
CORE (COnnecting REpositories)