We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on … low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 …

We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on … low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 …

We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on … low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 …

More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its … modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However …, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher …

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