| dc.description.abstract | The implication of a range of factors on the bank's credit channel of the monetary policy transmission was investigated in this study. One of the most important tools that the government uses to manage the economy is monetary policy. As little more than a result, understanding the trends in the area is a critical topic in economic research. Since the 1990s, Bangladesh's monetary policy objectives, and also the instruments and operational mechanisms for implementing them, have started to experience substantial improvements, have included those of other governments throughout the world. Even though maintaining economic stability (inflation) and stimulating economic growth have traditionally been recognized as essential requirements of the Bangladesh Bank's (BB) monetary policy, consecutive economic downturns in the global economy have changed dramatically Bangladesh's conventional monetary policy strategy. The conclusions of this research which was based on yearly data from the Mercantile Bank’s loan Department (2017-202) and Bangladesh’s monetary policy statement (2017-2021) shows that the lending is affected by changes in the interest rates of the quantitative measures of monetary policy. This research, on the other hand, shows how the loan channel works inside the market system. The impact of monetary policy on bank lending is influenced by the market power. For the banking industry, the findings have significant policy consequences. Although more competition grows angst about economic stability, more market power has a negative relationship with the bank lending and monetary policy transmission in these scenarios. Such findings might support counter banking strategies as a method of accomplishing the intended monetary policy aim. As a result, credit market inefficiencies in our model only account for a small amount of amplification and propagation of genuine monetary policy shocks. | en_US |
