Do Interest Rate Controls Work Evidence from Kenya is popular PDF and ePub book, written by Mr.Emre Alper in 2019-05-31, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, Do Interest Rate Controls Work Evidence from Kenya can be Read Online from any device for your convenience.
Do Interest Rate Controls Work Evidence from Kenya Book PDF Summary
This paper reviews the impact of interest rate controls in Kenya, introduced in September 2016. The intent of the controls was to reduce the cost of borrowing, expand access to credit, and increase the return on savings. However, we find that the law on interest rate controls has had the opposite effect of what was intended. Specifically, it has led to a collapse of credit to micro, small, and medium enterprises; shrinking of the loan book of the small banks; and reduced financial intermediation. We also show that interest rate caps reduced the signaling effects of monetary policy. These suggest that (i) the adverse effects could largely be avoided if the ceiling was high enough to facilitate lending to higher risk borrowers; and (ii) alternative policies could be preferable to address concerns about the high cost of credit.
Detail Book of Do Interest Rate Controls Work Evidence from Kenya PDF
- Author : Mr.Emre Alper
- Release : 31 May 2019
- Publisher : International Monetary Fund
- ISBN : 9781498313957
- Genre : Business & Economics
- Total Page : 21 pages
- Language : English
- PDF File Size : 16,7 Mb
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