Bubeck, Johannes; Maddaloni, Angela; Peydró, José-Luis - In: Journal of Money, Credit and Banking 52 (2020) S1, pp. 197-231
We show that negative monetary policy rates induce systemic banks to reach‐for‐yield. For identification, we exploit the introduction of negative deposit rates by the European Central Bank in June 2014 and a novel securities register for the 26 largest euro area banking groups. Banks with...