Interest Rate Channel of Monetary Policy in Poland

• Authors: Andrzej Kaźmierczak

Title variants

PL

Działanie kanału stopy procentowej polityki pieniężnej w Polsce

• Languages of publication: EN

Abstracts

EN

Central bank interest rate as an instrument of monetary policy has had a very limited influence on credit activity of commercial banking sector in the last five years in Poland. The National Bank of Poland hasn't been able to shape credit volume and domestic activity applying the basic tool of monetary policy. This phenomenon was the result of classic crowding out effect stemming from huge deficit of fiscal sector and from oversupply of treasury securities in domestic financial market. Purchase of treasury debt paper was attractive, alternative form of assets allocation for banks limiting the supply of credits for non financial sector. Aversion to credit risk in financial crisis circumstances has weakened the importance of interest rate level in financial capital allocation. On the other side, demand for credit hasn't depended on interest rate level only. For businesses, very important factor shaping demand for external financing was perceived perspective of future economic situation and the level of own funds. The main prerequisite for strengthening the interest rate transmission channel of monetary policy is limiting fiscal sector deficit and limiting supply of treasury debt paper as an attractive asset for commercial banks for investment.

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Szkoła Główna Handlowa w Warszawie. Kolegium Zarządzania i Finansów
• Journal: Journal of Management and Financial Sciences
• Year: 2011
• Volume: 4
• Issue: 5
• Pages: 36-53
• Document type: ARTICLE

Contributors

author

Andrzej Kaźmierczak

• Szkoła Główna Handlowa w Warszawie; Kolegium Zarządzania i Finansów; ul. Madalińskiego 6/8; 02-513 Warszawa; Polska

• Szkola Glówna Handlowa w Warszawie; Kolegium Zarzadzania i Finansów; ul. Madalinskiego 6/8; 02-513 Warszawa; Polska

Identifiers

CEJSH db identifier

11PLAAAA10453