Lending rate sensitivity to monetary policy: a bank level empirical analysis

Bendezu L.; Rodriguez G. · Journal of Economics, Finance and Administrative Science (2026) · DOI: 10.1108/jefas-12-2024-0383

Resumen

Purpose – This paper evaluates how the monetary policy rate influences bank lending rates in Peru, focusing on various loan types from September 2010 to August 2022. Design/methodology/approach – We utilize the Bai and Perron (1998, 2003) methodology to account for structural changes in the pass-through effect of monetary policy on lending rates. Findings – Findings indicate a heterogeneous impact of monetary policy on lending rates, with larger effects during significant rate changes and heightened sensitivity post-2019 due to COVID-19. Originality/value – This study is the first to investigate the effects of monetary policy on interest rates using segment and bank level data in Peru. © Luis Bendezu and Gabriel Rodriguez

Instituciones: Pontificia Universidad Católica del Perú