COVID-19 and the fragmentation of the European interbank market

Arbeitspapier

This paper provides evidence of a highly fragmented European interbank market that is tightened during the COVID-19 pandemic, when the interbank market was under stress. Using a unique dataset of unsecured, overnight interbank loans at the transactional level allows me to apply advanced panel methods. Furthermore, this paper shows liquidity hoarding during the pandemic and relationship lending as a German phenomenon. In addition, there is evidence that borrowers who have to pay higher rates in the market are more likely to participate in tender auctions and that the COVID-19 pandemic had the greatest impact on smaller interbank borrowers.

Object Details

• ISBN: 978-3-95729-976-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Deutsche Bundesbank Discussion Paper ; No. 07/2024

Classification and Topics

• Classification: Wirtschaft ; Financial Crises ; International Financial Markets ; General Financial Markets: Government Policy and Regulation ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Network Formation and Analysis: Theory
• Subject: nterbank Market ; Relationship Lending ; Liquidity ; COVID-19 ; Monetary Policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Pala, Melissa
• Event: Veröffentlichung
• (who): Deutsche Bundesbank
• (where): Frankfurt a. M.
• (when): 2024

Further information

• Handle: http://hdl.handle.net/10419/284408
• Last update: 10.03.2025, 11:41 AM CET