By using the Granger causality analyses
Very limited evidence was found for the deposits
Alwani also investigated the various channels of monetary mechanism in Malaysia
Found that the interest rate works most indirectly
Asset price
Important during the periods of high financial market volatility
Most of them have analysed the mechanism with an asymmetric viewpoint
Monetary regimes
By using an error correction model
The results showed that the majority of retail lending rates pass through is less than complete
Also Varies across retail interest rates
The main criticism of the error correction model is that it does not incorporate any GARCH elements to take into account the heteroskedasticity problems in the cointegrating errors
Asymmetric threshold cointegraation test
Deposit rate
The present study closely follows Wang
The superiority of this method with respect to traditional linear cointegration method is that the traditional linear cointegration
Error correction model do not consider the asymmetric adjustment of the interest rate
In addition
May not be able to correctly explain the adjustment process of the interest rate
Lee's study slightly in the aspect that we analysed the effect of 2008 financial crisis
In doing so
Dummy variable for the period of
To capture the impact of financial crisis of
In these aspects
In formulating short term money market
Consider the short run interest adjustment as well as the long run asymmetric adjusprice
Commercial bank's retail rates
Examine whether the speed and size of the pass through brings significant differences during the financial crisis
Is as follows