The Transmission Mechanism of Credit Support Policies in the Euro Area

Jef Boeckx (jef.boeckx@nbb.be), Maite De Sola Perea and Gert Peersman (gert.peersman@ugent.be)

ECMI Papers from Centre for European Policy Studies

Abstract: Using a sample of 131 banks, we find that the Eurosystem's credit support policies have been successful in stimulating bank credit to the private sector: the impact was greater on the loan supply of smaller, less liquid, less capitalized banks and those more dependent on wholesale funding. The role of bank capital is, however, ambiguous. Besides the above favorable direct effect on loan supply, lower levels of bank capitalization at the same time mitigate the size, retail and liquidity effects of these policies. The low capital drag on the other channels has even been dominant during the sample period.

Pages: 47 pages
Date: 2017-06
New Economics Papers: this item is included in nep-cba, nep-eec, nep-mon and nep-pay
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.ceps.eu/publications/transmission-mech ... t-policies-euro-area (application/pdf)

Related works:
Journal Article: The transmission mechanism of credit support policies in the euro area (2020)
Working Paper: The Transmission Mechanism of Credit Support Policies in the Euro Area (2017)
Working Paper: The transmission mechanism of credit support policies in the Euro Area (2016)
Working Paper: THE TRANSMISSION MECHANISM OF CREDIT SUPPORT POLICIES IN THE EURO AREA (2016)
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:eps:ecmiwp:12624

Access Statistics for this paper

More papers in ECMI Papers from Centre for European Policy Studies Contact information at EDIRC.
Bibliographic data for series maintained by Margarita Minkova (admin@ceps.eu).