Implicatii ale plasarii dobanzilor in zona negativa

Effects of negative interest rates

Marius Danila

MPRA Paper from University Library of Munich, Germany

Abstract: Negative interest rates, as an instrument of monetary policy, are regarded by the central authorities as a stimulant for the growth of real economy through: decrease of lending costs, increase of consumption, decrease of volatility and so on. However this policy has a negative influence within certain areas of the financial industry, and has the potential to create instead increased market volatility, uncertainty and mistrust in institutions and decision makers. Profitability of banking institutions, volume of NPLs, capital adequacy, liquidity risk, challenges for investment funds and stock exchanges are several issues analysed by this paper, together with several recommendations on tackling the most pressing effects of negative interest rates.

Keywords: European banking; European Central Bank; negative interest rates; capital adequacy; financial industry; investment funds; non performing loans; monetary policy (search for similar items in EconPapers)
JEL-codes: E43 E52 E58 G15 G21 G23 (search for similar items in EconPapers)
Date: 2016-03-01
New Economics Papers: this item is included in nep-mac
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Published in Economistul 5-6 (2016): pp. 14-20

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:72634

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