Does the deposits channel work under a low interest rate environment?
Ana Sa () and
Economics Letters, 2019, vol. 185, issue C
According to the deposits channel of monetary policy, central banks can influence the deposits holdings and the loan supply by changing the policy rate. This paper discusses the generality of this channel and shows that low interest rates may turn this channel off. This result contributes to the literature on unintended effects of monetary policy and banks’ profitability in a low interest rate environment.
Keywords: Deposits channel; Monetary policy; Low interest rates; Bank profitability (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 G12 G21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:185:y:2019:i:c:s0165176519303702
Access Statistics for this article
Economics Letters is currently edited by Economics Letters Editorial Office
More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().