This paper studies the impact of the negative interest rate policy (NIRP) on euro area banks’ interest rate margins, using bank-individual data for the 2007-2019 period. An important extension to other studies is our breakdown of banks’ interest rate margin into a funding and lending...

This paper takes stock of European banks’ accumulated losses since 2007 and relates these to bank characteristics. In line with previous studies, we find that large, market-oriented banks were particularly hit by the 2007-2009 global financial crisis whereas smaller, retail-oriented banks...

Using a panel dataset of euro area banks over the period 2007-2019, we investigate the impact of negative interest rates on bank behavior. In line with the reversal rate literature, we find that negative interest rates squeeze banks’ interest rate margins, which can be attributed to downward...