Purpose

This paper aims to examine the role of foreign banks in transmitting global monetary policy shocks to India. Further, the authors try to explore the international bank lending channel and analyze the impact of global monetary policy on Indian macroeconomic variables.

Design/methodology/approach

The authors use a structural break unit root test and structural vector autoregression on monthly data from 1998 to 2018.

Findings

The study finds that the global monetary policy is significantly determining foreign banks’ lending in India; the evidence of a portfolio re-balancing channel in the process of global monetary policy transmission to the Indian economy; the exchange rate is significantly explaining the foreign bank credit dynamism in India; and evidence of international monetary policy spillover to the Indian economy.

Originality/value

This is the first attempt to analyze the role of foreign banks in the transmission of global monetary policy shocks to India, where the literature availability is limited. The finding of ineffective domestic monetary policy on foreign bank lending opens the need for an in-depth and diversified analysis of the role of foreign banks in the transmission of domestic monetary policy.

中文翻译：

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在印度的外资银行是否应对全球货币政策冲击？SVAR 分析

目的

本文旨在研究外国银行在将全球货币政策冲击传导至印度方面的作用。此外，作者尝试探索国际银行贷款渠道，分析全球货币政策对印度宏观经济变量的影响。

设计/方法/方法

作者对 1998 年至 2018 年的月度数据使用结构断裂单位根检验和结构向量自回归。

发现

研究发现，全球货币政策在很大程度上决定了外国银行在印度的贷款；全球货币政策向印度经济传导过程中的投资组合再平衡渠道的证据；汇率显着解释了印度的外资银行信贷活力；以及国际货币政策对印度经济溢出的证据。

原创性/价值

这是第一次尝试分析外国银行在全球货币政策冲击向印度传导方面的作用，因为印度的文献有限。国内货币政策对外国银行贷款无效的发现开启了对外国银行在国内货币政策传导中的作用进行深入和多样化分析的必要性。