The researcher should improve the definition of a "fully-integrated banking system". It may be related to the banks' interacting financially witheach other (eg, the development of interbank markets of funds) or to the banking system's providing monetary/financial services to all regions in a country (eg, financial inclusion of poor areas far from the main cities). Then, a complementary definition of "monetary policy effectiveness" is due.

Sinha, how does difference -in-difference method work? Kindly forward to my email :[email protected], the description of this methodology and how it is applied. Thank you.

Carlos , pls refer or send me a work that covered your views in this perspective or answer via emailto:[email protected]. Thank you.

Dear Sebastain, Researchgate has the incentives to intellectually trade ideas about research. You can find references about the topics already mentioned in google. My previous answer was made just to clarify the discussion. Besides, did approach is well documented in recent undergraduate econometrics texts.

Thanks Carlos for clarification. I liked your views on the 'fully integrated banking system.'

Suppose interest rate channel is considered for your first definition of fully integrated banking system (development of interbank market). Whether monetary policy will be more effective with increased pass through of policy rate on retail rates?