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More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its …, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher …
Persistent link: https://www.econbiz.de/10012977791
bank funding costs and borrower leverage matter for firms' access to finance. Increases in bank funding costs and borrowers …
Persistent link: https://www.econbiz.de/10013053038
We study the transmission of monetary shocks across euro-area countries using a dynamic factor model and high-frequency identification. We develop a methodology to assess the degree of heterogeneity, which we find to be low in financial variables and output, but significant in consumption,...
Persistent link: https://www.econbiz.de/10012828237
This paper analyzes the drivers of cross-border bank lending to 49 Emerging Markets (EMs) during the period 1990Q1 … decrease in bank leverage, our results indicate a broad-based overall contraction of cross-border lending if the shock … literature has traditionally highlighted the influence of US monetary policy on driving cross-border bank flows, and more …
Persistent link: https://www.econbiz.de/10012859870
Monetary policy space remains constrained by the lower bound in many countries, limitingthe policy options available to address future deflationary shocks. The existence of cashprevents central banks from cutting interest rates much below zero. In this paper, we considerthe practical feasibility...
Persistent link: https://www.econbiz.de/10012910358
Given the heavy reliance on bank lending as the main source of financing in most Asian economies, banks could … potentially play a pivotal role in monetary policy transmission. However, we find that Asia's bank lending channel or, more … broadly, credit channel of domestic monetary policy is not very strong at the aggregate level. Using bank-level data for nine …
Persistent link: https://www.econbiz.de/10013011204
shocks on bilateral cross-border bank lending. We find robust evidence that an increase in funding costs following an … exogenous monetary tightening leads to a statistically and economically significant decline in cross-border bank lending. The …
Persistent link: https://www.econbiz.de/10012858392
an interbank rate as an operational target and suggest that the central bank could reduce uncertainty in short …
Persistent link: https://www.econbiz.de/10012977834
bank interest rates in India. There is evidence of asymmetric adjustment to monetary policy: the lending rate adjusts more … quickly to monetary tightening than to loosening. In addition, the speed of adjustment of deposit and lending rates to changes …
Persistent link: https://www.econbiz.de/10013019014
conditional profitability distributions. Real GDP growth and the NPL ratio are shown to be the most reliable determinants of bank …
Persistent link: https://www.econbiz.de/10012843521