-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 …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

of banking sector concentration. Using a local projections framework with 2003-2023 country-level and bank-level data for …

a cointegration vector that links bank-specific lending rates, deposit rates, the 3-month Euribor, and the ECB Deposit … Euribor. This is linked to an Austrian Supreme Court decision mandating the transmission of negative reference rates to bank … bank-specific lending rates and the 3-month Euribor. Additionally, by including the ECB Deposit Facility in our …

How much of the heterogeneity in bank loan pricing is explained by disparities in banks' attitude towards risk? The … answer to this question is not simple because there are only very weak proxies for gauging the degree of a bank's risk … confirm that disparities in market power, banks' funding costs, and banks' funding risks are re ected in bank lending rates …

What is the effect of Central Bank Digital Currency (CBDC) on financial stability? We answer this question by studying … a model of financial intermediation with an endogenously determined probability of a bank run, using global games. As an … alternative to bank deposits, consumers can also store their wealth in remunerated CBDC issued by the central bank. Consistent …

inspired by the Silicon Valley Bank (SVB) meltdown in March 2023 and our model may serve as a supervisory analysis tool to … calibrating this to SVB's balance sheet data, we shed light on the bank's funding risk and implied risk tolerance in the years …