This paper seeks to understand how interest rates are formed in Lebanon, by focusing on the pass-through from benchmark … dollarization. We find that international interest rates are an important element in the determination of interest rates in Lebanon … investor base. The study also shows that interest rates in Lebanon are affected by liquidity conditions as well as perceived …

participates in this flow of research by studying the reaction of 40 banks operating in Lebanon between 1994 and 2017, to a change … liquidity only. Consequently, interest rate channel in Lebanon operates through banks with high market power and banks with high …