Arbeitspapier
LOLR policies, banks' borrowing capacities and funding structures
We investigate banks' benefits and costs of having access to LOLR. Integrating novel data sets we estimate the borrowing capacities of euro area banks at the ECB. Controlling for ratings, we find that banks with more fragile funding are likely to borrow more from the ECB during the great financial and euro area sovereign debt crises. We develop a dynamic model of a bank and calibrate it to our empirical estimates. A bank with access to LOLR has higher equity value and makes larger investments in new loans, but it is more leveraged, pays more dividends and issues less equity.
- ISBN
-
978-92-899-5386-3
- Language
-
Englisch
- Bibliographic citation
-
Series: ECB Working Paper ; No. 2738
- Classification
-
Wirtschaft
Central Banks and Their Policies
- Subject
-
LOLR
Collateral
Haircut
Borrowing Capacity
Liquidity
- Event
-
Geistige Schöpfung
- (who)
-
Corradin, Stefano
Sundaresan, Suresh M.
- Event
-
Veröffentlichung
- (who)
-
European Central Bank (ECB)
- (where)
-
Frankfurt a. M.
- (when)
-
2022
- DOI
-
doi:10.2866/931984
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Corradin, Stefano
- Sundaresan, Suresh M.
- European Central Bank (ECB)
Time of origin
- 2022
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