DID COMMERCIAL BANKS FOLLOW THE POLICY OF THE CENTRAL BANK? EVIDENCE FROM SELECTED EU COUNTRIES

This study is based on examining the interaction between interest rates set by commercial banks and central bank policy rate. In this framework, it analyzed whether follow decisions of for selected European countries (Bulgaria, Czechia, Denmark, Hungary, Romania, Turkey). The research hypotheses put forward were tested using Toda-Yamamoto approach periods 2010M01-2021M08. It showed a reciprocal causality deposit in Bulgaria, Turkey. However, direction was only from rate to Our hypothesis that valid Czech Republic, Hungary. since bidirectional Turkey, we couldn't conclude