Arbeitspapier

The impact of the ECB's targeted long-term refinancing operations on banks' lending policies: The role of competition

We assess the impact of the Eurosystem's Targeted Long-Term Refinancing Operations (TLTROs) on the lending policies of euro area banks. We first build a theoretical model in which banks compete in the credit and deposit markets. We distinguish between direct and indirect effects. Direct effects take place because bidding banks expand their loan supply due to the lower marginal costs implied by the TLTROs. Indirect effects on non-bidders operate via changes in the competitive environment in banks' credit and deposit markets. We then test these predictions with a sample of 130 banks from 13 countries focusing on the first TLTRO series. Regarding direct effects, we find an easing impact on margins on loans to relatively safe borrowers, but no impact on credit standards. Regarding indirect effects, there is a positive impact on the loan supply on non-bidders which operates via an easing of credit standards.

ISBN
978-92-899-4007-8
Sprache
Englisch

Erschienen in
Series: ECB Working Paper ; No. 2364

Klassifikation
Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Monetary Policy
Central Banks and Their Policies
Thema
unconventional monetary policy
TLTROs
lending policies
competition

Ereignis
Geistige Schöpfung
(wer)
C. Andreeva, Desislava
García-Posada, Miguel
Ereignis
Veröffentlichung
(wer)
European Central Bank (ECB)
(wo)
Frankfurt a. M.
(wann)
2020

DOI
doi:10.2866/3836
Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • C. Andreeva, Desislava
  • García-Posada, Miguel
  • European Central Bank (ECB)

Entstanden

  • 2020

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