Negative rates, monetary policy transmission and cross-border lending via international financial centres

Arbeitspapier

We study the effects of negative interest rate policies (NIRP) on the transmission of monetary policy through cross-border lending. Using bank-level data from international financial centres - the United Kingdom, Hong Kong and Ireland - we examine how NIRP in the economies where banks have their headquarters influences cross-border lending from financial-centre affiliates. We find that NIRP impairs the bank-lending channel for cross-border lending to non-bank sectors, especially for those banks that have only a weak deposit base in IFCs - and are thus relatively more exposed to NIRP in their headquarters. Using euro-area data, including bank-level data from France, we find that NIRP does not influence overall cross-border lending from banks' headquarters' economies, but NIRP does impair lending to financial sectors based in IFCs. This impairment is stronger for banks with a large deposit base in headquarter economies exposed to NIRP.

Angaben zum Objekt

• ISBN: 978-92-899-5517-1
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 2775

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Monetary Policy ; International Lending and Debt Problems ; Financial Aspects of Economic Integration ; International Policy Coordination and Transmission ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Thema: Bank lending ; Cross-border lending ; International financial centres ; Monetary policy ; Negative interest rates ; Risk-taking

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Andreeva, Desislava éC. ; Coman, Andra ; Everett, Mary ; Froemel, Maren ; Ho, Kelvin ; Lloyd, Simon ; Meunier, Baptiste ; Pedrono, Justine ; Reinhardt, Dennis ; Wong, Andrew ; Wong, Eric ; çZochowski, Dawid
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2023

Weitere Informationen

• DOI: doi:10.2866/350963
• Handle: http://hdl.handle.net/10419/278346
• Letzte Aktualisierung: 10.03.2025, 11:43 MEZ