#4761. Impacts of monetary instruments on overnight spread under the interest rate corridor framework: evidence from China

August 2026publication date
Proposal available till 26-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Business, Management and Accounting (miscellaneous);
Business and International Management;
Places in the authors’ list:
place 1place 2place 3place 4
FreeFreeFreeFree
2350 $1200 $1050 $900 $
Contract №4761.1 Contract №4761.2 Contract №4761.3 Contract №4761.4
1 place - free (for sale)
2 place - free (for sale)
3 place - free (for sale)
4 place - free (for sale)

Abstract:
To verify the effectiveness of the monetary policy, the impacts of monetary instruments on overnight spread under the interest rate corridor (IRC) are examined. The Peoples Bank of China (PBC) has operated the IRC since 20XX. To understand the impacts of monetary instruments on overnight spread before and after the IRC framework, the complete samples are divided into two periods. To model the overnight spread, an exponential GARCH (EGARCH) approach is used which can examine the interbank market interest rates for monetary policy purposes. Chinese interest rate liberalization and the implementation of IRC affect the overnight spread in the short-term financing market. After the implementation of IRC, the overnight spread can be the largest part explained by the liquidity demand side and the PBCs multiple monetary instruments have significant impacts on the reduction of overnight spread. The overnight spread has recently been influenced by various factors that are directly or closely related to the monetary policy instruments and the interest rate policy of the PBC.
Keywords:
Interest corridor; Liquidity; Money policy instruments; Overnight spread

Contacts :
0