Economics at your fingertips  

Bank lending under negative policy rates

Glenn Schepens

Research Bulletin, 2018, vol. 43

Abstract: This article shows how the pass-through of negative policy rates via bank lending depends on a bank’s funding structure. When policy rates enter negative territory, high-deposit banks increase risk-taking but reduce lending in the syndicated loan market relative to low-deposit banks. The increase in risk-taking reduces financial constraints for higher risk firms. JEL Classification: E44, E52, E58, G20, G21

Keywords: bank lending; bank risk-taking; monetary policy; negative interest rates (search for similar items in EconPapers)
Date: 2018-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link) ... ecb.rb180213.en.html (text/html) ... /ecb.rb180213.en.pdf (application/pdf)

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:

Access Statistics for this article

More articles in Research Bulletin from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().

Page updated 2020-03-25
Handle: RePEc:ecb:ecbrbu:2018:0043: