Peydró, José-Luis; Polo, Andrea; Sette, Enrico - 2020
Monetary policy transmission may be impaired if banks rebalance their portfolios towards securities to e.g. risk … security registers. In crisis times, with higher ECB liquidity, less capitalized banks react by increasing securities over … credit supply, inducing worse firm-level real effects. However, they buy securities with lower yields and haircuts, thus …