{
  "title": "How Do Changing U.S. Interest Rates Affect Banks in the Gulf Cooperation Council (GCC) Countries?",
  "publication": "IMF Working Papers, December 6, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2019/12/06/how-do-changing-u-s-48801",
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  "summary": "Given their pegged exchange rate regimes, Gulf Cooperation Council (GCC) countries usually adjust their policy rates to match shifting U.S. monetary policy. This raises the important question of how changes in U.S. monetary policy affect banks in the GCC.",
  "sections": [
    {
      "heading": "Authors and publication",
      "content": "- By Olumuyiwa S Adedeji, Yacoub Alatrash, Divya Kirti\n- December 6, 2019\n- IMF Working Papers, Working Paper No. 2019/268\n- Pages: 18\n- Volume: 2019\n- Issue: 268\n- DOI: https://doi.org/10.5089/9781513519319.001\n- Stock No: WPIEA2019268\n- ISBN: 9781513519319\n- ISSN: 1018-5941"
    },
    {
      "heading": "Research question and context",
      "content": "- Given pegged exchange rate regimes, GCC countries usually adjust their policy rates to match shifting U.S. monetary policy.\n- Central question: How do changes in U.S. monetary policy affect banks in the GCC, specifically funding costs, asset rates, and profitability?"
    },
    {
      "heading": "Data and methodology",
      "content": "- Uses bank-level panel data.\n- Exploits variation across banks within countries to isolate the impact of changing U.S. interest rates on GCC banks."
    },
    {
      "heading": "Key findings",
      "content": "- Stronger pass-through from U.S. monetary policy to liability rates than to asset rates and bank profitability.\n- The asymmetric pass-through largely reflects funding structures of GCC banks.\n- The study explores:\n  - The role of shifts in the quantity of bank liabilities as policy rates change.\n  - The role of large banks with relatively stable funding costs in explaining observed findings."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Bank soundness, Banking, Central bank policy rate, Commercial banks, Competition, Deposit rates, Financial institutions, Financial markets, Financial sector policy and analysis, Financial services\n- Keywords: bank, bank assets rate, bank level, Bank soundness, banks scope, Central bank policy rate, Commercial banks, Competition, Deposit rates, GCC bank assets rate, Global, liability, liability rate, liability structure, panel data, rate, sensitive bank, WP"
    },
    {
      "heading": "Citation preview (as provided on source)",
      "content": "- Olumuyiwa S Adedeji, Yacoub Alatrash, and Divya Kirti. \"How Do Changing U.S. Interest Rates Affect Banks in the Gulf Cooperation Council (GCC) Countries?\", IMF Working Papers 2019, 268 (2019), accessed 9/10/2026, https://doi.org/10.5089/9781513519319.001\n\nIMF Working Paper No. 2019/268\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2019/12/06/how-do-changing-u-s-48801"
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    "Authors: Olumuyiwa S Adedeji, Yacoub Alatrash, Divya Kirti",
    "Published: December 6, 2019",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513519319.001",
    "By Olumuyiwa S Adedeji, Yacoub Alatrash, Divya Kirti",
    "December 6, 2019",
    "IMF Working Papers, Working Paper No. 2019/268",
    "Pages: 18",
    "Volume: 2019",
    "Issue: 268",
    "DOI: https://doi.org/10.5089/9781513519319.001",
    "Stock No: WPIEA2019268",
    "ISBN: 9781513519319",
    "ISSN: 1018-5941",
    "Given pegged exchange rate regimes, GCC countries usually adjust their policy rates to match shifting U.S. monetary policy.",
    "Central question: How do changes in U.S. monetary policy affect banks in the GCC, specifically funding costs, asset rates, and profitability?",
    "Uses bank-level panel data.",
    "Exploits variation across banks within countries to isolate the impact of changing U.S. interest rates on GCC banks.",
    "Stronger pass-through from U.S. monetary policy to liability rates than to asset rates and bank profitability.",
    "The asymmetric pass-through largely reflects funding structures of GCC banks.",
    "The study explores:",
    "Subject: Bank soundness, Banking, Central bank policy rate, Commercial banks, Competition, Deposit rates, Financial institutions, Financial markets, Financial sector policy and analysis, Financial services",
    "Keywords: bank, bank assets rate, bank level, Bank soundness, banks scope, Central bank policy rate, Commercial banks, Competition, Deposit rates, GCC bank assets rate, Global, liability, liability rate, liability structure, panel data, rate, sensitive bank, WP",
    "Olumuyiwa S Adedeji, Yacoub Alatrash, and Divya Kirti. \"How Do Changing U.S. Interest Rates Affect Banks in the Gulf Cooperation Council (GCC) Countries?\", IMF Working Papers 2019, 268 (2019), accessed 9/10/2026, https://doi.org/10.5089/9781513519319.001",
    "**Working Paper**"
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