This study is an attempt to examine the impact of bank lending channel in the monetary transmission mechanism of … Decomposition Analysis.This study concludes that the bank loans and deposits are unable to play their role significantly in the …

We develop a New Keynesian model where all payments between agents require bank deposits through deposits …-in-advance constraints, bank deposits are created through disbursement of bank loans, and banks face a convex lending cost. At the zero lower …

We develop a New Keynesian model where all payments between agents require bank deposits, bank deposits are created … through disbursement of bank loans, and banks face convex lending costs. At the zero lower bound on deposit rates (ZLBD …