Monetary policy under the microscope : Intra-bank transmission of asset purchase programs of the ECB

Content Provider	Semantic Scholar
Author	Cycon, Lisa
Copyright Year	2015
Abstract	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 reduced corporate borrowing costs. We decompose corporate lending rates into re nancing 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 e ects on loan rate components, we exploit the co-existence of Eurozone-wide security purchase programs and regional scal policies at the district level. European Central Bank purchase programs reduced re nancing costs signi cantly, even in an economy not speci cally 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.
File Format	PDF HTM / HTML
Alternate Webpage(s)	https://www.econstor.eu/bitstream/10419/112831/1/VfS_2015_pid_810.pdf
Language	English
Access Restriction	Open
Subject Keyword	Bank (environment) European Chemicals Bureau Financial cost Large Microscope Device Component Money Purchasing
Content Type	Text
Resource Type	Article