Year: 2018 | Month: December | Volume 63 | Issue 4
Impact of Monetary Policy on Bank Credit since Reforms Period
Mahendra R. Mishra
Sunil S. Narwade
DOI:10.30954/0424-2513.4.2018.15
Abstract:
Does Bank Rate, Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) affect the bank credit? This question always comes in the mind of researchers, economist, academicians, and policymakers and to get the answer to it, many research activities and projects are carried out by them. This study is also on the same line. The study intends to examine the impact of monetary policy on bank credit since reforms period. The study uses multiple regression models to test the selected banking variables by using the time series data collected from RBI. The study found that there is an inverse relationship between CRR and bank credit, SLR and bank credit but there is no association between bank rate by RBI and bank credit by the scheduled commercial banks in India since reforms period.
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