SIGNIFICANCE OF MONETARY INSTRUMENTS IN REGULATING THE ACTIVITIES OF BANKS

In this article, the impact of monetary policy instruments on the activity of commercial banks, in particular on bank liquidity, loan percentage and loan portfolio, is analyzed on the basis of econometric models. He used two different models in the econometric analysis assessing the impact of monetary policy instruments on commercial banks. The first model is a least square model, while the second is a structural vector autoregression model. In studying the impact of the monetary policy of the Central Bank on the activity of commercial banks, it analyzed two different types of banks.

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