The Effectiveness of National Bank’s Measures on De-Dollarization of the Banking Sector

Abstract

This study is aimed at studying the effectiveness of the measures of the National Bank of the Kyrgyz Republic on de-dollarization of the banking sector. Dependent variables are the ratio of deposits and loans in US dollars to the total amount of deposits and loans. According to the results of this work the measures National Bank’s policy have a positive effect on dedollarization. Also, the goal of the work is to evaluate the actions of the National Bank in terms of evaluating the effectiveness of monetary policy instrument of possible measures to reduce the level of dollarization. The study analyzed the financial data of 27 commercial banks over 16 years on a monthly basis. For this, the GMM model was used.