Exploiting confidential data from the euro area, we show that sound banks can pass negative rates on to their corporate depositors without experiencing a contraction in funding. These pass-through effects become stronger as policy rates move deeper into negative territory. Banks offering...

Exploiting confidential data from the euro area, we show that sound banks pass negative rates onto their corporate depositors and that the pass-through is not impaired when policy rates move deeper into negative territory. We do not observe a contraction in deposits. When their banks charge...

Using panel dataset of 9,421 banks from 59 countries over the period 2009-2018 and Differences-in-Differences framework, this paper aims to assess the effects of negative interest rates on banks' risk-taking. We find that banks' risk-taking has been lower in countries where negative rates have...