Gocheva, Viktoriya; Mudde, Yvo; Tapking, Jens - 2022
increases. We investigate how this LCR boost from central bank credit affects banks' behaviour, looking at the euro area during … conclusions, our analysis suggests that central bank credit operations can provide strong incentives for banks to take actions … bank credit tend to take actions that reduce their LCRs. In this sense, banks consume their LCR boosts. In terms of policy …