However, some discrepancies in the interest rate pass-through across countries seem to persist, which may reflect, in addition to the different structures of financial institutions and markets, a lack of sufficient financial integration. Similarly, the level and the type of indebtedness of households and non-financial corporations both play a role in the transmission of monetary policy.
Our analysis shows that some of the differences across countries could be related to the degree of integration and development of the respective financial systems.