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lots of arguments about the benefits of monetary policy implementation on deposit money bank's operations, since the … Liquidity Ratio, Interest and Money supply (M2), which are used as monetary policy instruments, on deposit money bank … Liquidity Ratio and deposit money bank's profitability; there also existed a negative long run relationship between interest …
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leverage on GDP, credit and the interest rate spread. Increasing capital requirements for banks should therefore have no strong …
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As the euro area has a predominantly bank-based financial system, changes in the composition and strength of banks’ balance sheets can have very sizeable implications for the transmission of monetary policy. This paper provides an overview of developments in banks’ balance sheets,...
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