Bank lending under negative policy rates
Research Bulletin, 2018, vol. 43
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)
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