Details Matter: Loan Pricing and Transmission of Monetary Policy in the Euro Area

Karlis Vilerts, Sofia Anyfantaki, Konstantīns Beņkovskis, Sebastian Bredl, Massimo Giovannini, Florian Matthias Horky, Vanessa Kunzmann, Tibor Lalinský, Athanasios Lampousis, Elizaveta Lukmanova, Filippos Petroulakis and Klāvs Zutis
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Konstantīns Beņkovskis: Latvijas Banka
Massimo Giovannini: Bank of Malta
Florian Matthias Horky: Národná banka Slovenska and Zeppelin University
Vanessa Kunzmann: Deutsche Bundesbank and Bank of Malta
Tibor Lalinský: European Central Bank and Národná banka Slovenska
Athanasios Lampousis: Bank of Greece
Elizaveta Lukmanova: Central Bank of Ireland and KU Leuven
Klāvs Zutis: Latvijas Banka

International Journal of Central Banking, 2026, vol. 22, issue 2, 1-89

Abstract: Does the maturity of the relevant risk-free rate influence the strength of monetary policy pass-through to interest rates on new loans? To address this question, we present novel empirical evidence on lending practices across all euro-area countries, using AnaCredit data covering nearly 7 million new loans issued to nonfinancial corporations in 2022–23. We document substantial variation in (i) the prevalence of fixed- versus floating-rate loans, (ii) rate fixation periods, and (iii) reference rates. This variation results in lending rates being exposed to different segments of the risk-free rate yield curve which, in turn, influence their sensitivity to monetary policy changes. We show that loans linked to shorter-maturity risk-free rates experience more pronounced monetary pass-through. Importantly, this effect is not purely mechanical, as part of the effect is offset by adjustments in the premium, revealing previously less-explored heterogeneity in the pass-through to lending rates.

Date: 2026
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Related works:
Working Paper: Details matter: loan pricing and transmission of monetary policy in the euro area (2025)
Working Paper: Details Matter: Loan Pricing and Transmission of Monetary Policy in the Euro Area (2025)
Working Paper: Details matter: loan pricing and transmission of monetary policy in the euro area (2025)
Working Paper: Details Matter: Loan Pricing and Transmission of Monetary Policy in the Euro Area (2025)
Working Paper: Details Matter: Loan Pricing and Transmission of Monetary Policy in the Euro Area (2025)
Working Paper: Details matter: Loan pricing and transmission of monetary policy in the euro area (2025)
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