Determinants of excess reserve holdings

Peter Hoffmann and Jean-David Sigaux

Economics Letters, 2020, vol. 195, issue C

Abstract: We study the determinants of individual banks’ excess reserve holdings in the context of the ECB’s public sector purchase programme by testing hypotheses concerning the roles of risk-taking, investment opportunities, and market structure. Excess reserves systematically accrue on the balance sheets of banks with a low share of customer deposits, low opportunity costs, and high payments settlement activity.

Keywords: Central bank reserves; Money markets; Asset purchases (search for similar items in EconPapers)
JEL-codes: E52 G11 G21 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:195:y:2020:i:c:s0165176520302731

DOI: 10.1016/j.econlet.2020.109439

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