Nexus Between Monetary Policy & Liquidity Creation; Study From The Perspective Of Pakistan

The study investigates whether Pakistan's conventional banks create liquidity in response to monetary policy. secondary data is gathered from the Thomson Reuter financial streams. annual time series collected 2000 2021. Conventional by using liquid liabilities finance illiquid assets. Ali & Ahmad (2022) estimated quantity of created Pakistan over past 21 years Catfat model developed Berger and Bouwman (2009). current used amount examine impact policy on creation simple linear regression econometric model. outcomes indicate that has a significant positive Pakistan. By regulating rate, State Bank manages create. decisions made are crucial for economic development country. future implication several bank-specific industry-specific factors affect creation, so there need explore same different regions world.