Economic Research Southern Africa (ERSA) is a research programme funded by the National Treasury of South Africa. The views expressed are those of the author(s) and do not necessarily represent those of the funder, ERSA or the author’s affiliated institution(s). ERSA shall not be liable to any person for inaccurate information or opinions contained herein. The Role of Banks in Monetary Policy Transmission in South Africa Syden Mishi and Asrat Tsegaye ERSA working paper 295 June 2012