Exploiting confidential data on individual German bank balance-sheets, I analyse what characterises a bank that opts to …

, reference) rate of a central bank on the deposit policy of commercial banks. Deposit channel is a very rarely treated as a … the other it makes more difficult for a central bank policy to absorb extra liquidity from the market to reduce pressure …

-run supply of bank credit. As U.S. bond rates have fallen, the pass-through of monetary shocks to loan and deposit rates has … weakened while the spread on U.S. bank loans has risen. I build a model in which banks earn deposit and loan spreads, deposits … dampened at low rates, because deposit spreads act as a better hedge for bank equity against unexpected monetary shocks. In the …