Monetary policy under the microscope : intra-bank transmission of asset purchase programs of the ECB / Lisa Cycon, Michael Koetter
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Discovery
834453363
URN
urn:nbn:de:gbv:3:2-48588
DOI
ISBN
ISSN
Autorin / Autor
Beiträger
Körperschaft
Erschienen
Halle (Saale) : Leibniz-Institut für Wirtschaftsforschung Halle (IWH) ; Halle (Saale) : Universitäts- und Landesbibliothek Sachsen-Anhalt, July 2015
Umfang
1 Online-Ressource (III, 44 Seiten) : Diagramme, Karten
Ausgabevermerk
Sprache
eng
Anmerkungen
Gesehen am 14.12.2016
Inhaltliche Zusammenfassung
With a unique loan portfolio maintained by a top-20 universal bank in Germany, this study tests whether unconventional monetary policy by the European Central Bank (ECB) reduced corporate borrowing costs. We decompose corporate lending rates into refinancing costs, as determined by money markets, and markups that the bank is able to charge its customers in regional markets. This decomposition reveals how banks transmit monetary policy within their organizations. To identify policy effects on loan rate components, we exploit the co-existence of eurozone-wide security purchase programs and regional fiscal policies at the district level. ECB purchase programs reduced refinancing costs significantly, even in an economy not specifically targeted for sovereign debt stress relief, but not loan rates themselves. However, asset purchases mitigated those loan price hikes due to additional credit demand stimulated by regional tax policy and enabled the bank to realize larger economic margins.
Schriftenreihe
IWH-Diskussionspapiere ; number 9/2015 ppn:837399270