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| Author | : Michiel van Leuvensteijn |
| Publisher | : |
| Total Pages | : 62 |
| Release | : 2008 |
| Genre | : Bank loans |
| ISBN | : |
| Author | : Michiel van Leuvensteijn |
| Publisher | : |
| Total Pages | : 39 |
| Release | : 2008 |
| Genre | : Bank loans |
| ISBN | : |
| Author | : Andreas Jobst |
| Publisher | : International Monetary Fund |
| Total Pages | : 48 |
| Release | : 2016-08-10 |
| Genre | : Business & Economics |
| ISBN | : 1475524471 |
More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.
| Author | : Dr. John Aggelis |
| Publisher | : |
| Total Pages | : |
| Release | : 2006 |
| Genre | : |
| ISBN | : |
The dynamic relationship between the key policy interest rate and different short-term lending and saving rates is analysed by measuring the pass-through process between these interest rates in the banking systems of Euro area countries. This paper also examines the interdependencies between the Euro area retail banking markets. In order to capture efficiently these relationships, this study employed an impulse response model, based on VAR specification. This study focuses on the period from January 1985 to January 2004 as well as on the pre- and post Euro sub-periods. The impulse response model showed that policy controlled interest rates are not immediately reflected in retail bank interest rates. The results of this study provide evidence that the pass-through is higher in the longer term. It is evident from the impulse response results that consumer lending and saving rates are stickier than other bank retail rates, for most of the Euro area countries. It is also evident that some Euro area countries display stickier interest rate series than others. The introduction of the Euro as common currency in the eleven countries studied led to a slower and weaker pass-through process for most Eurozone countries, as the impulse response empirical analysis shows.
| Author | : Joseph M. Berrospide |
| Publisher | : DIANE Publishing |
| Total Pages | : 50 |
| Release | : 2011-04 |
| Genre | : Business & Economics |
| ISBN | : 1437939864 |
The effect of bank capital on lending is a critical determinant of the linkage between financial conditions and real activity, and has received especial attention in the recent financial crisis. The authors use panel-regression techniques to study the lending of large bank holding companies (BHCs) and find small effects of capital on lending. They then consider the effect of capital ratios on lending using a variant of Lown and Morgan's VAR model, and again find modest effects of bank capital ratio changes on lending. The authors¿ estimated models are then used to understand recent developments in bank lending and, in particular, to consider the role of TARP-related capital injections in affecting these developments. Illus. A print on demand pub.
| Author | : Mr.Ali J Al-Eyd |
| Publisher | : International Monetary Fund |
| Total Pages | : 32 |
| Release | : 2013-10-04 |
| Genre | : Business & Economics |
| ISBN | : 1484365119 |
The ECB has taken a range of actions to address bank funding problems, eliminate excessive risk in sovereign markets, and safeguard monetary transmission. But euro area financial markets have remained fragmented, driving retail interest rates in stressed markets far above those in the core. This has impeded the flow of credit and undermined the transmission of monetary policy. Analysis presented here indicates that the credit channel of monetary policy has broken down during the crisis, particularly in stressed markets, and that SMEs in these economies appear to be most affected by elevated lending rates.Given these stresses, the ECB can undertake additional targeted policy measures, including through additional term loans, collateral policies, and private asset purchases.
| Author | : Mr.Yu Sun |
| Publisher | : International Monetary Fund |
| Total Pages | : 27 |
| Release | : 2011-06-01 |
| Genre | : Business & Economics |
| ISBN | : 1455268488 |
This paper investigates the degree of bank competition in the euro area, the U.S. and U.K. before and after the recent financial crisis, and revisits the issue whether the introduction of EMU and the euro have had any impact on bank competition. The results suggest that the level of bank competition converged across euro area countries in the wake of the EMU. The recent global financial crisis led to a fall in competition in several countries and especially where large credit and housing booms had preceded the crisis..
| Author | : Natalya Martynova |
| Publisher | : International Monetary Fund |
| Total Pages | : 44 |
| Release | : 2015-11-25 |
| Genre | : Business & Economics |
| ISBN | : 1513565818 |
Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many profitable banks choose to invest in untested financial instruments before the crisis, realizing significant losses? We attempt to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering up to engage in risky ‘side activities’(such as market-based investments) alongside the core business. A more profitable core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk of given size. Consequently, more profitable banks may have higher risk-taking incentives. The framework is consistent with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis.
| Author | : Luís Brandão Marques |
| Publisher | : International Monetary Fund |
| Total Pages | : 84 |
| Release | : 2021-03-03 |
| Genre | : Business & Economics |
| ISBN | : 1513570080 |
This paper focuses on negative interest rate policies and covers a broad range of its effects, with a detailed discussion of findings in the academic literature and of broader country experiences.
| Author | : Ignazio Angeloni |
| Publisher | : Cambridge University Press |
| Total Pages | : 515 |
| Release | : 2003-12-04 |
| Genre | : Business & Economics |
| ISBN | : 1139438816 |
This 2003 book offers the most systematic analysis available of the impact of European Central Bank monetary policy on the national economies of the Eurozone. Analysing macro and micro-economic evidence, with chapters by central bank economists, including a discussion chapter by eminent macroeconomists, it is an essential contribution to research on the subject.
