The consequences of the bank levy in Poland

Mariusz Kapuściński

No 346, NBP Working Papers from Narodowy Bank Polski

Abstract: In this study I analyse the effects of a bank levy, as introduced in Poland, on areas which appear to be relevant from the perspective of a central bank. I apply the difference-in-differences method, using bank level panel data. I find that the introduction of the bank levy has affected the use of some monetary policy instruments, money market rates and volumes, and deposit and loan rates. However, I find little evidence of its impact on loan volumes, bank profitability, capital and risk-taking. This means that the bank levy has had important implications for monetary policy implementation, interest rate benchmark reform and monetary conditions, but (as yet) less so for financial stability. As an extension of the study, I document its effects on assets and Treasury bond holdings (including their changes at the end of the month), and estimate the impact of bank balance sheet adjustments on government revenues.

Keywords: bank levy; difference-in-differences; panel data; monetary policy instruments; money market; financial stability (search for similar items in EconPapers)
JEL-codes: C23 E43 E51 E52 G18 H26 H39 (search for similar items in EconPapers)
Pages: 60
Date: 2022
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mon and nep-tra
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Persistent link: https://EconPapers.repec.org/RePEc:nbp:nbpmis:346

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