The effect of TLTRO-II on bank lending

Olli-Matti Laine

No 7/2019, Bank of Finland Research Discussion Papers from Bank of Finland

Abstract: This study applies a difference-in-differences approach to estimate the effect of the European Central Bank's second series of targeted longer-term refinancing operations (TLTRO-II) on bank lending. Effects on corporate loans, loans for house purchase and loans for consumption are analysed separately. The results indicate that TLTRO-II increased lending to non-financial corporations. The cumulative effect of TLTRO-II on participating banks' corporate lending is estimated to be about 30 per cent. The estimated effects for house purchase and consumption loans are positive, but statistically insignificant.

JEL-codes: E44 E51 E52 G21 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (2)

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