explore the determinants of the choice of using bank loans for short-term liquidity insurance purposes or long-term funding …We show that illiquid assets such as bank loans are used by euro area banks both as central bank collateral for short …-term liquidity insurance purposes and for longer-term funding purposes for issuing covered bonds or asset-backed securities. We then …

In June 2014 the ECB became the first major central bank to lower one of its key policy rates to negative territory … by using individual bank data for the euro area to identify possible adjustments by banks triggered by the introduction … of negative interest rates through three channels: government bond holdings, bank lending, and wholesale funding. We find …

).We explain W-LGDs by means of: the degree of redeployability/liquidity of companies' assets, conflicts of interest between (un …)coordinated banks and their borrowers, bank strategic (re)actions when they draw their loan contracts and the impact of macroeconomic …

We analyze the impact of market liquidity on bank lending in the euro area for different segments over the period 2003 … liquidity has an asymmetric effect on bank lending: The negative impact of a reduction in liquidity is more significant than the … restricted first in times of impaired market liquidity. The bank-level data confirm the strong impact of market liquidity on bank …

holdings for the effectiveness of NIRP, pointing to a strong complementarity of NIRP with central bank liquidity injections, e … deposits tends to be floored at zero, which limits the typical transmission of policy rate cuts to bank funding costs. We … that reliance on retail deposit funding and the level of excess liquidity holdings may increase banks' responsiveness to …