, can be avoided with accounting treatments whereas others, chiefly credit losses, cannot. A simple model shows that a bank’s …, especially if a bank is capital constrained. This study thus focuses on a bank’s exposure to interest rate risk through a … maturity mismatch between its assets and liabilities. It finds evidence that the banks that faced less enhanced regulation …

maturity mismatch between its assets and liabilities. It finds evidence that the banks that faced less enhanced regulation … compelled banks to reach for yield. It is important to recognize that banks can take on a variety of risks that offer higher …, can be avoided with accounting treatments whereas others, chiefly credit losses, cannot. A simple model shows that a bank …

Central Bank in conventional and unconventional monetary policy periods. According to the results, conventional interest rate …

tends to be floored at zero. We investigate whether this friction affects banks’ reactions when the policy rate is lowered … to negative levels, compared to a standard rate cut in the euro area. We exploit the cross-sectional variation in banks …’ funding structures jointly with that in their excess liquidity holdings. We find evidence that banks highly exposed to the …

by using individual bank data for the euro area to identify possible adjustments by banks triggered by the introduction …In June 2014 the ECB became the first major central bank to lower one of its key policy rates to negative territory …. The theoretical and empirical literature is silent on whether banks’ reaction would be different when the policy rate is …

-in-advance constraints, bank deposits are created through disbursement of bank loans, and banks face a convex lending cost. At the zero lower …We develop a New Keynesian model where all payments between agents require bank deposits through deposits … bound on deposit rates (ZLBD), changes in policy rates affect activity through both real interest rates and banks' net …