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How should monetary policy respond to changes in financial conditions? In this paper we consider a simple model where firms are subject to idiosyncratic shocks which may force them to default on their debt. Firms' assets and liabilities are denominated in nominal terms and predetermined when...
Persistent link: https://www.econbiz.de/10013116576
We explore the dynamic effects of news about a future technology improvement which turns out ex post to be overoptimistic. We find that it is difficult to generate a boom-bust cycle (a period in which stock prices, consumption, investment and employment all rise and then crash) in response to...
Persistent link: https://www.econbiz.de/10013316465
Monetary policy in the euro area is conducted within a multi-country, multicultural, and multi-lingual context involving multiple central banking traditions. How does this heterogeneity affect the ability of economic agents to understand and to anticipate monetary policy by the ECB? Using a...
Persistent link: https://www.econbiz.de/10013318108
This paper presents evidence that personal relationships between corporate borrowers and bank loan officers improve the outcomes of loan renegotiation. Analysing a bank reorganization in Greece in the mid-2010s, I find that firms that experience an exogenous interruption in their loan officer...
Persistent link: https://www.econbiz.de/10013227323
We provide new evidence on how ECB’s monetary policy decisions affect firms’ bank loan expectations in the euro area. We use firm-level data derived from the ECB Survey on the Access to Finance of Enterprises for the period 2009 to 2022 and identify the impact of monetary policy by comparing...
Persistent link: https://www.econbiz.de/10014352750
of banks' responses to yield curve shocks, due to individual banks' balance sheet structure, different capital and …. The paper also illustrates that the benefits of the measure crucially hinge on banks' ability and incentives to ease their …
Persistent link: https://www.econbiz.de/10012988604
We use a confidential euro area bank-level data set of close to 250 banks to assess outward and inward spillovers of … unconventional monetary policies on bank lending. We find that euro area banks increase lending to the rest of the world in response … to non-standard ECB monetary policy accommodation. We also find strong evidence that euro area banks increase lending to …
Persistent link: https://www.econbiz.de/10012943524
-run deceleration of credit growth, mainly driven by the response of banks …
Persistent link: https://www.econbiz.de/10013118686
provision of credit. We show that new factors, such as changes in banks' business models and market funding patterns, had … structural changes during the period of financial crisis. Banks with weaker core capital positions, greater dependence on market … findings support the Basel III focus on banks' core capital and on funding liquidity risks. They also call for a more forward …
Persistent link: https://www.econbiz.de/10013126858
conditions increase bank credit in general and bank credit to ex-ante risky firms in particular, especially for banks with lower …
Persistent link: https://www.econbiz.de/10013075926