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The great lockdown : pandemic response policies and bank lending conditions

Altavilla, Carlo; Barbiero, Francesca; Boucinha, Miguel; … - 2020

of new coronavirus (COVID-19) pandemic. We focus on monetary, microprudential and macroprudential policies designed … specifically to support bank lending conditions. For identification, we use proprietary data on participation in central bank … bank capital requirements. The results show that in the absence of the funding cost relief and capital relief associated …

Persistent link: https://www.econbiz.de/10012271571

Pandemic lending : micro and macro effects of model-based regulation

Fiordelisi, Franco; Fusi, Giulia; Maddaloni, Angela; … - 2022

When the Covid-19 crisis struck, banks using internal-rating based (IRB) models quickly recognized the increase in risk and reduced lending more than banks using a standardized approach. This effect is not driven by borrowers' quality or by banks in countries with credit booms before the...

Persistent link: https://www.econbiz.de/10013485965

Banks and negative interest rates

Heider, Florian; Saidi, Farzad; Schepens, Glenn - 2021

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

Persistent link: https://www.econbiz.de/10012518247

Market-stabilization QE

Motto, Roberto; Özen, Kadir - 2022

We identify a novel dimension of monetary policy from high-frequency changes in asset prices around ECB policy events, orthogonal to surprises extracted from risk-free interest rates. We find that it is present in policy events that were interpreted by real-time market commentaries as containing...

Persistent link: https://www.econbiz.de/10012818740

Global models for a global pandemic: the impact of COVID-19 on small euro area economies

García, Pablo; Jacquinot, Pascal; Lenarcic, Crt; … - 2021

This paper analyses the effects of the COVID-19 pandemic shock on small open economies in a monetary union with an application to the euro area. Accounting for a high degree of openness and a strong dependence on intra and extra union trade, we focus on the size and the direction of...

Persistent link: https://www.econbiz.de/10012643287

The nonlinear effects of banks' vulnerability to capital depletion in euro area countries

Davidson, Sharada Nia; Moccero, Diego Nicolas - 2024

either assume that the effects of bank capital shocks are linear or ignore feedback effects and the impact on the … are typically associated with low bank margins and profitability, also lead to a larger decline in lending. De-risking is …