Negative Rates, Monetary Policy Transmission and Cross-Border Lending Via International Financial Centres
We study the effects of negative interest rate policies (NIRP) on the transmission of monetary policy through cross-border lending. Using bank-level data from international financial centres – the United Kingdom, Hong Kong and Ireland – we examine how NIRP in the economies where banks have their headquarters influences cross-border lending from financial-centre affiliates. We find that NIRP impairs the bank-lending channel for cross-border lending to non-bank sectors, especially for those banks that have only a weak deposit base in IFCs – and are thus relatively more exposed to NIRP in their headquarters. Using euro-area data, including bank-level data from France, we find that NIRP does not influence overall cross-border lending from banks’ headquarters’ economies, but NIRP does impair lending to financial sectors based in IFCs. This impairment is stronger for banks with a large deposit base in headquarter economies exposed to NIRP
Year of publication: |
2023
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Authors: | Żochowski, Dawid ; Andreeva, Desislava ; Coman, Andra ; Everett, Mary ; Froemel, Maren ; Ho, Kelvin ; Lloyd, Simon ; Pedrono, Justine ; Reinhardt, Dennis ; Wong, Andrew ; Wong, T. C. |
Publisher: |
[S.l.] : SSRN |
Subject: | Geldpolitische Transmission | Monetary transmission | Finanzplatz | Financial centre | Geldpolitik | Monetary policy | Kreditgeschäft | Bank lending | Internationaler Finanzmarkt | International financial market | Welt | World |
Saved in:
freely available
Extent: | 1 Online-Ressource (68 p) |
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Series: | ECB Working Paper ; No. 2023/2775 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February, 2023 erstellt |
Other identifiers: | 10.2139/ssrn.4351416 [DOI] |
Classification: | E52 - Monetary Policy (Targets, Instruments, and Effects) ; F34 - International Lending and Debt Problems ; F36 - Financial Aspects of Economic Integration ; F42 - International Policy Coordination and Transmission ; G21 - Banks; Other Depository Institutions; Mortgages |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10014257755