The objective of this paper to investigate the effectiveness of credit easing policy in mitigating the economic fallout … channels: (i) higher non-performing loans provisions, and (ii) lower the marginal return of assets. Credit policy is modelled …. Unconventional monetary policy, namely credit easing policy, is shown to be ineffective in mitigating the effects of a financial …

The credit risk exposure of the German banking system is growing again after the 2009 peak and its subsequent reduction … deleverage the EZ banks. This happened by mutualizing the German banks' credit risk on the Eurosystem and by transferring on the … underlying assets credit granted outside Europe. This measure would hence exclude the possibility for the German banking system …