{
  "title": "E-Money and Monetary Policy Transmission",
  "publication": "IMF Working Papers, March 29, 2024",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2024/03/29/e-money-and-monetary-policy-transmission-546926",
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  "summary": "E-money development has important yet theoretically ambiguous consequences for monetary policy transmission, because nonbank deposit-taking e-money issuers (EMIs) (e.g., mobile network operators) can either complement or substitute banks.",
  "sections": [
    {
      "heading": "Overview",
      "content": "- E-money development has important yet theoretically ambiguous consequences for monetary policy transmission because nonbank deposit-taking e-money issuers (EMIs) (e.g., mobile network operators) can either complement or substitute banks.\n- Case studies of e-money regulations point to complementarity of EMIs with banks, implying that the development of e-money could deepen financial intermediation and strengthen monetary policy transmission.\n- The paper highlights the potential benefits of e-money development in strengthening monetary policy transmission, especially in countries with limited financial inclusion."
    },
    {
      "heading": "Methods and Data",
      "content": "- Panel data analysis over 2001 to 2019.\n- Monthly panel: covering 21 countries.\n- Annual panel: covering 47 countries.\n- Estimation approach: two-way fixed effect estimator to estimate the causal effects of e-money development on monetary policy transmission."
    },
    {
      "heading": "Key Findings",
      "content": "- E-money development has accompanied stronger monetary policy transmission, measured by the responsiveness of interest rates to the policy rate.\n- E-money development has accompanied growth in bank deposits and credit.\n- E-money development has accompanied efficiency gains in financial intermediation, measured by the lending-to-deposit rate spread.\n- Evidence is more pronounced in countries where e-money development takes off in a context of limited financial inclusion."
    },
    {
      "heading": "Subject Areas and Keywords",
      "content": "- Subject: Bank credit, Central bank policy rate, Deposit rates, Financial inclusion, Financial markets, Financial services, Money\n- Keywords: Africa, Bank credit, banks, Central bank policy rate, Deposit rates, e-money, e-money development, e-money intensity, E-Money intensity, e-money issuer, Financial inclusion, Monetary policy transmission, nonbank financial institutions, panel data, Sub-Saharan Africa\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/2024/03/29/e-money-and-monetary-policy-transmission-546926"
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    "Authors: Zixuan Huang, Amina Lahreche, Mika Saito, Ursula Wiriadinata",
    "Published: March 29, 2024",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400270543.001",
    "E-money development has important yet theoretically ambiguous consequences for monetary policy transmission because nonbank deposit-taking e-money issuers (EMIs) (e.g., mobile network operators) can either complement or substitute banks.",
    "Case studies of e-money regulations point to complementarity of EMIs with banks, implying that the development of e-money could deepen financial intermediation and strengthen monetary policy transmission.",
    "The paper highlights the potential benefits of e-money development in strengthening monetary policy transmission, especially in countries with limited financial inclusion.",
    "Panel data analysis over 2001 to 2019.",
    "Monthly panel: covering 21 countries.",
    "Annual panel: covering 47 countries.",
    "Estimation approach: two-way fixed effect estimator to estimate the causal effects of e-money development on monetary policy transmission.",
    "E-money development has accompanied stronger monetary policy transmission, measured by the responsiveness of interest rates to the policy rate.",
    "E-money development has accompanied growth in bank deposits and credit.",
    "E-money development has accompanied efficiency gains in financial intermediation, measured by the lending-to-deposit rate spread.",
    "Evidence is more pronounced in countries where e-money development takes off in a context of limited financial inclusion.",
    "Subject: Bank credit, Central bank policy rate, Deposit rates, Financial inclusion, Financial markets, Financial services, Money",
    "Keywords: Africa, Bank credit, banks, Central bank policy rate, Deposit rates, e-money, e-money development, e-money intensity, E-Money intensity, e-money issuer, Financial inclusion, Monetary policy transmission, nonbank financial institutions, panel data, Sub-Saharan Africa",
    "**Working Paper**"
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