Impact of TLTRO III on bank lending: The Slovak experience

Marcel Barmeier, Juraj Falath, Alena Kissova () and Adriana Lojschova
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Alena Kissova: National Bank of Slovakia

No WP 2/2023, Working and Discussion Papers from Research Department, National Bank of Slovakia

Abstract: We investigate the impact of TLTRO III operations introduced by the European Central Bank on bank lending, interest rates and profitability of Slovak banks. We deploy a two-step estimation approach with a mahalanobis distance matching and a difference-in-difference approach relying on bank-level and AnaCredit data. Our findings suggest that the credit easing measures had a positive effect on bank lending and negative effect on lending rates for non-financial corporations. With respect to bank profitability, we find inconclusive evidence of a positive effect of TLTRO III on net interest income and return on assets. Banks in Slovakia have not significantly increased their reserves at the central bank in reaction to participation in TLTRO III.

JEL-codes: E43 E44 E51 E52 E58 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2023-03
New Economics Papers: this item is included in nep-ban, nep-cba, nep-mac, nep-mon and nep-tra
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:svk:wpaper:1093

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