Incentives for the finance sector: How the ECB affects banks' business assembling
Bernard Gilroy (),
Alexander Golderbein (),
Christian Peitz () and
Nico Stöckmann ()
Additional contact information
Alexander Golderbein: Paderborn University
Christian Peitz: Paderborn University
Nico Stöckmann: Paderborn University
No 116, Working Papers CIE from Paderborn University, CIE Center for International Economics
Central banks implement negative interest rate policies (NIRP) to incentivize economic subjects to spend and invest money for long term economic growth. Although nominal negative interest rates can not be effectively explained by economic theory, when inflation is included there are currently real negative interest rates in almost all industrial nations. We investigate the difference in banks' performances regarding their core business composition in the short run after zero interest rate policy is announced first. Assigning European banks in the interval from a pure commercial bank to an investment bank leads to the observed heterogeneity within the industry.
Keywords: Monetary Policy; Bank Profitability; Globalisation; Financial Crisis (search for similar items in EconPapers)
JEL-codes: E52 F65 G21 (search for similar items in EconPapers)
Pages: 11 pages
New Economics Papers: this item is included in nep-cba, nep-eec and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
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:pdn:ciepap:116
Access Statistics for this paper
More papers in Working Papers CIE from Paderborn University, CIE Center for International Economics Contact information at EDIRC.
Bibliographic data for series maintained by WP-WiWi-Info () and ().