Does the deposits channel work under a low interest rate environment?

Ana Sa and José Jorge

Economics Letters, 2019, vol. 185, issue C

Abstract: According to the deposits channel of monetary policy, central banks can influence the deposits holdings and the loan supply by changing the policy rate. This paper discusses the generality of this channel and shows that low interest rates may turn this channel off. This result contributes to the literature on unintended effects of monetary policy and banks’ profitability in a low interest rate environment.

Keywords: Deposits channel; Monetary policy; Low interest rates; Bank profitability (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 G12 G21 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176519303702
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:185:y:2019:i:c:s0165176519303702

DOI: 10.1016/j.econlet.2019.108736

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().