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We analyse the impact of standard and non-standard monetary policy measures on bank profitability. For empirical … profitability are asymmetrically affected by accommodative monetary conditions, with a positive impact on loan loss provisions and … banks benefit more from monetary policy easing, banks engaging more extensively in maturity transformation experience a …
Persistent link: https://www.econbiz.de/10012945753
How a historic drop in bank deposits shapes banks' loan supply? We exploit the effects of a large, and unexpected … includes all bank-firm lending relationships in all euro area countries. We find that banks experiencing large deposit outflows … is stronger for fixed rate and longer maturity loans, but not for riskier borrowers. The effect is mostly driven by banks …
Persistent link: https://www.econbiz.de/10014543622
In a model with costly financial intermediation and financial disturbances, credit subsidies are desirable, irrespective of how they are financed. They are especially useful when the zero lower bound constraint is reached. They are superior to other credit policies such as direct lending.
Persistent link: https://www.econbiz.de/10011605922
on banks’ internal ratings on loans to businesses over the period 1997 to 2011 from the Federal Reserve’s survey of terms … of business lending. We find that ex-ante risk taking by banks (measured by the risk rating of new loans) is negatively … with the nationwide business cycle, and less pronounced for banks with relatively low capital or during periods of …
Persistent link: https://www.econbiz.de/10011605948
banks' lending policies. Banks charge higher interest rates to firms featuring greater carbon emissions, and lower rates to … firms committing to lower emissions, controlling for their probability of default. Both effects are larger for banks … committed to decarbonization. Consistently with the risk-taking channel of monetary policy, tighter policy induces banks to …
Persistent link: https://www.econbiz.de/10015199535
We study how monetary policy and risk shocks affect asset prices in the US, the euro area, and Japan, differentiating between "traditional" monetary policy and communication events, each decomposed into "pure" and information shocks. Communication shocks from the US spill over to risk in the...
Persistent link: https://www.econbiz.de/10014543667
This survey reviews the literature about the impact of climate change on the natural rate of interest (r*), an important yardstick for monetary policy. Economic and financial developments can lower r* in scenarios with increasing climate-related damages and uncertainty that reduce productivity...
Persistent link: https://www.econbiz.de/10014374331
Capital flows into the euro area were particularly large in the mid-2000s and the share of foreign holdings of euro area securities increased substantially between the introduction of the euro and the outbreak of the global financial crisis. We show that the increase in foreign holdings of euro...
Persistent link: https://www.econbiz.de/10013020658
on future policy decisions. The paper also discusses lessons from the Fed experience for the ECB and other central banks …
Persistent link: https://www.econbiz.de/10012983076
I extend the model of Laubach and Williams (2003) by introducing an explicit role for the financial cycle in the joint estimation of the natural rates of interest, unemployment and output, and the sustainable growth rate of the US economy. By incorporating the financial cycle - arguably an...
Persistent link: https://www.econbiz.de/10012914883