and bank credit is allocated less efficiently than in France and Germany. Hence capital misal- location by banks can be a …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete …

The paper analyzes how the removal of barriers to entry in banking affect loan competition, bank stability and economic … welfare. We consider a model of spatial loan competition where a market that is served by less efficient banks is opened to … entry by banks that are more efficient in screening borrowers. It is shown that there is typically too little entry and that …

growing evidence that negative policy rates are special because the pass-through to banks' retail deposit rates is hindered by … a zero lower bound. We summarize existing work on the impact of negative rates on banks' lending and securities …

benefits (UB) and employment protection legislation (EPL) in the euro area from a Bayesian narrative panel VAR. The approach … develops a simple analytical framework to study the impact of central bank policy-rate changes on banks' credit supply and risk … for a policy-rate cut to become contractionary ("reversal"). Reversal can occur even though banks' net-interest margins …

We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on … negative rates to depositors, which increases the funding cost of high-deposit banks, and reduces their net worth, relative to … low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 …

the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as …We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …

. Among the deposit rates, the interest rates of the overnight deposits are the least sensitive. Banks' asset quality …This paper investigates the relationship between bank funding costs and solvency for a large sample of euro area banks …

implications for financial stability. We contribute to this debate assessing the asset price impact of fire sales in a novel … partial equilibrium model of euro area funds and banks calibrated over the period between 2008 and 2017. An initial shock to … yields causes funds to sell assets to address investor redemptions, while both banks and funds sell assets to keep their …

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 …