-based interest rates set by the central bank. Liquidity costs of banks increase with the emission intensity of their asset portfolio …, leading banks to favor low-carbon assets and to improve the financing conditions for clean sectors. We show that such a …

We study how the subjective beliefs about loan repayment on the side of liquidity-constrained banks affect the central … bank's choice of collateral standards in its lending facilities. Optimism on the side of banks, entailing a higher … banks' belief distortions and always induce the socially optimal allocation. Under uncertainty about beliefs, the central …

unique collateral leverage channel, which cannot be replicated by standard capital requirements. Through this channel, banks …

-based interest rates set by the central bank. Liquidity costs of banks increase with the emission intensity of their asset portfolio …, leading banks to favor low-carbon assets and to improve the financing conditions for clean sectors. We show that such a …

We study how the subjective beliefs about loan repayment on the side of liquidity-constrained banks affect the central … bank's choice of collateral standards in its lending facilities. Optimism on the side of banks, entailing a higher … banks' belief distortions and always induce the socially optimal allocation. Under uncertainty about beliefs, the central …

unique collateral leverage channel, which cannot be replicated by standard capital requirements. Through this channel, banks …

the central bank’s perspective, suboptimal and may lead to financial instability. We find that an appropriate design of …