Arbeitspapier
Hampered interest rate pass-through: A supply side story?
This paper shows that the supply side of credit is a major factor for the phenomenonof hampered interest rate pass-through in monopolistic banking markets. Our data,covering all 1,555 small and medium sized banks in Germany, provides a clear wayto partial out demand shocks; we are thus able to show that while market-powerbanks charge higher loan rates, they spare their borrowers a part of exogenousupward shifts in the yield curve and furthermore withhold a substantial part ofrising market rates from their depositors. Because high market-power banks inour sample are relatively more profitable, they seem to be able to insure theirrelationship-customers against adverse shocks.
- ISBN
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978-3-95729-791-4
- Language
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Englisch
- Bibliographic citation
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Series: Deutsche Bundesbank Discussion Paper ; No. 59/2020
- Classification
-
Wirtschaft
Interest Rates: Determination, Term Structure, and Effects
Money Supply; Credit; Money Multipliers
Monetary Policy
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
- Subject
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interest rate pass-through
bank competition
credit supply
- Event
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Geistige Schöpfung
- (who)
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Heckmann, Lotta
Moertel, Julia
- Event
-
Veröffentlichung
- (who)
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Deutsche Bundesbank
- (where)
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Frankfurt a. M.
- (when)
-
2020
- Handle
- Last update
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10.03.2025, 11:43 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
- Heckmann, Lotta
- Moertel, Julia
- Deutsche Bundesbank
Time of origin
- 2020
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Exchange rate pass-through and real exchange rate in EU candidate countries
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Implications of negative interest rates for the net interest margin and lending of euro area banks
Why do banks bear interest rate risk?
Supply-side effects of strong energy price hikes in German industry and transportation
Interest rate shocks, competition and bank liquidity creation
Changes in the euro area interest rate pass-through
Interest rate pass-through to the rates of core deposits: A new perspective
The pass-through from market interest rates to bank lending rates in Germany
Robust monetary policy in a new Keynesian model with imperfect interest rate pass-through
Short-term forecasting economic activity in Germany: A supply and demand side system of bridge equations
Exchange rate pass-through and real exchange rate in EU candidate countries
The interest rate pass-through in the euro area during the sovereign debt crisis
Negative interest rate policy led to negative interest rates on corporate deposits and higher fees
Implications of negative interest rates for the net interest margin and lending of euro area banks
Why do banks bear interest rate risk?
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