The ECB’s Contemporary Unconventional Monetary Policy in the Context of the Financial Crisis

Silvia Trifonova () and Venelina Trifonova ()
Additional contact information
Venelina Trifonova: University of National and World Economy, Sofia, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2016, issue 4, 5-26

Abstract: The main objective of the paper is to explore the unconventional (non-standard) measures of the European Central Bank’s monetary policy, undertaken in response to the global financial crisis. This research puts emphasis on the key instruments of the ECB’s unconventional mon­etary policy, such as follows: first, conduct of accommodative monetary policy at nominal in­terest rates, close to zero or even below zero; second, implementation of measures of en­hanced credit support policy for commercial banks through the Åxpanded Asset Purchase Programme (APP). The latter presently includes the following programmes: Asset-backed secu­rities purchase programme (ÀBSPP), Covered bond purchase programme (ÑBPP), Corpo­rate Sector Purchase Programme (CSPP) and Òargeted longer-term refinancing operations programme (TLTRO II). With this regard, in the paper is also investigated the ECB’s practice on expanding credit assessment framework for eligible assets used for the Eurosystem credit operations. Moreover, the limitations against the measures for provision of liquidity to financial markets and banking system in the euro area are explored. Special attention in the paper is attached on the ECB’s monetary policy started in June 2014, which has gone beyond the zero bound on nominal interest rates, in particular the interest rate on deposit facility, as well as the effects stemming from the negative interest rate levels on lending and real economy in the euro area. This analysis is associated with the study on banking lending in the euro area as a result from the ECB’s expanded asset purchase programme and the negative deposit facility rate – in particular, the credit standards on loans to enterprises and households, banks’ net interest income, their liquidity ratio and credit margins.

Keywords: unconventional monetary policy; the ECB; negative nominal interest rates; enhanced credit support; expanded Asset Purchase Programe (search for similar items in EconPapers)
JEL-codes: E42 E58 G21 G23 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.unwe.bg/uploads/Alternatives/Trifonovi-Alternativi_4_%202016_bg.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: https://EconPapers.repec.org/RePEc:nwe:iisabg:y:2016:i:4:p:5-26

Access Statistics for this article

More articles in Ikonomiceski i Sotsialni Alternativi from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().