Table 2.

Pass-through of KIBOR to lending rate (overall banking industry)

Variable−1−2−3−4
Coefficient
Long run1.05***0.98***1.02***0.93***
Short run0.41***0.40***0.42***0.38***
Speed of adjustment−0.17***−0.27***−0.27***−0.39***
Control variables
Real GDP growthSig at 5%Not sig
Exchange rateNot sigSig at 5%
Government borrowingNot sigSig at 5%
Liquidity conditionsSig at 5%Sig at 5%
Stock marketNot sigNot sig
HHINot sigNot sig
NPls/total loansSig at 5%Sig at 5%
Post-Covid periodSig at 5%Sig at 10%
ConstantNoYesNoYes
TrendNoYesNoYes
Observations236236236236
R-squared0.620.630.640.63
Note(s):

***p < 0.01; **p < 0.05; *p < 0.1

Source(s): Author’s own work

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