estimate the impact of the ECB's dividend recommendation on bank lending and risk-taking. To address identification issues, we …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

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 …

should reduce problems with non-performing loans. The effects of QE on bank profitability are therefore not one directional … their net interest income, but they have also acknowledged its positive impact on capital gains (ECB Bank Lending Survey …). Lending-deposit spreads for new lending have fallen significantly. Looking at actual bank profits, net interest income has …