In this study, we apply ARDL models to estimate the strength of long-run interest rate pass-through in Ukraine. We concentrate on the transmission of overnight interbank interest rate to the rates on term deposits of households and loans to non-financial corporations both in national currency. Besides linear estimates, we report asymmetric transmissions, which differ depending on the decrease or increase of interbank rate, and time-varying estimates of transmission. Applying our methodology to the data of individual banks, we got bank-level time-varying estimates of transmission. This allowed us to analyze determinants of pass-through strength by running a set of panel regressions, including macroeconomic variables and indicators derived from banks' balance sheets.
