ASYMMETRIC ADJUSTMENT OF THE SECTORIAL LENDINGDEPOSIT RATE SPREAD IN FIJI

Authors

Shamal Shivneel Chand, The University of the South Pacific - Fiji
Baljeet Singh, The University of the South Pacific - FijiFollow

Document Type

Article

Abstract

This study investigates the asymmetric adjustment of the sectorial lending-deposit rate spread in Fiji’s banking industry using monthly data from January 2000 to February 2020. The study uses the threshold autoregressive and the momentum threshold autoregressive models to test for cointegration and to detect asymmetries. The analysis provides evidence of an asymmetric adjustment process in the sectorial lending deposit rate spread among Fijian commercial banks. This finding has important policy implications and provides better understanding of the asymmetric behaviour in Fiji’s banking industry.

Recommended Citation

Chand, Shamal Shivneel and Singh, Baljeet (2021) "ASYMMETRIC ADJUSTMENT OF THE SECTORIAL LENDINGDEPOSIT RATE SPREAD IN FIJI," Bulletin of Monetary Economics and Banking: Vol. 24: No. 0, Article 1.
DOI: https://doi.org/10.21098/bemp.v24i0.1468
Available at: https://bulletin.bmeb-bi.org/bmeb/vol24/iss0/1

First Page

89

Last Page

106

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Fiji

Affiliation

The University of the South Pacific