Arbeitspapier
Monetary Policy under the Microscope: Intra-bank Transmission of Asset Purchase Programs of the ECB
With a unique loan portfolio maintained by a top-20 universal bank in Germany, this study tests whether unconventional monetary policy by the European Central Bank (ECB) reduced corporate borrowing costs. We decompose corporate lending rates into refinancing costs, as determined by money markets, and markups that the bank is able to charge its customers in regional markets. This decomposition reveals how banks transmit monetary policy within their organizations. To identify policy effects on loan rate components, we exploit the co-existence of eurozone-wide security purchase programs and regional fiscal policies at the district level. ECB purchase programs reduced refinancing costs significantly, even in an economy not specifically targeted for sovereign debt stress relief, but not loan rates themselves. However, asset purchases mitigated those loan price hikes due to additional credit demand stimulated by regional tax policy and enabled the bank to realize larger economic margins.
- Language
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Englisch
- Bibliographic citation
-
Series: IWH Discussion Papers ; No. 9/2015
- Classification
-
Wirtschaft
Financial Crises
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Monetary Systems; Standards; Regimes; Government and the Monetary System; Payment Systems
Interest Rates: Determination, Term Structure, and Effects
Monetary Policy
- Subject
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unconventional monetary policy
asset purchase programs
ECB
interest rate channel
internal capital markets
- Event
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Geistige Schöpfung
- (who)
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Cycon, Lisa
Koetter, Michael
- Event
-
Veröffentlichung
- (who)
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Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
- (where)
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Halle (Saale)
- (when)
-
2015
- Handle
- URN
-
urn:nbn:de:gbv:3:2-48588
- Last update
-
10.03.2025, 11:43 AM CET
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
- Cycon, Lisa
- Koetter, Michael
- Leibniz-Institut für Wirtschaftsforschung Halle (IWH)
Time of origin
- 2015
Other Objects (12)
Monetary Policy under the Microscope: Intra-bank Transmission of Asset Purchase Programs of the ECB
Monetary policy under the microscope: Intra-bank transmission of asset purchase programs of the ECB
The financial market effects of the ECB's asset purchase programs
Heterogeneous macro and financial effects of ECB asset purchase programs
ECB asset purchase programs raise inflation expectations in the Euro area
The ECB's asset purchase programme: an early assessment
Country-level effects of the ECB's expanded asset purchase programme
The macroeconomic effects of large-scale asset purchase programs
The macroeconomic impact of the ECB's expanded asset purchase programme (APP)
Tracing the impact of the ECB's asset purchase programme on the yield curve
Tracing the impact of the ECB's asset purchase programme on the yield curve
Inside asset purchase programs: the effects of unconventional policy on banking competition
Monetary Policy under the Microscope: Intra-bank Transmission of Asset Purchase Programs of the ECB
Monetary policy under the microscope: Intra-bank transmission of asset purchase programs of the ECB
The financial market effects of the ECB's asset purchase programs
Heterogeneous macro and financial effects of ECB asset purchase programs
ECB asset purchase programs raise inflation expectations in the Euro area
The ECB's asset purchase programme: an early assessment
Country-level effects of the ECB's expanded asset purchase programme
The macroeconomic effects of large-scale asset purchase programs
The macroeconomic impact of the ECB's expanded asset purchase programme (APP)
Tracing the impact of the ECB's asset purchase programme on the yield curve
Tracing the impact of the ECB's asset purchase programme on the yield curve
Inside asset purchase programs: the effects of unconventional policy on banking competition
Monetary Policy under the Microscope: Intra-bank Transmission of Asset Purchase Programs of the ECB
Monetary policy under the microscope: Intra-bank transmission of asset purchase programs of the ECB
The financial market effects of the ECB's asset purchase programs
Heterogeneous macro and financial effects of ECB asset purchase programs
ECB asset purchase programs raise inflation expectations in the Euro area
The ECB's asset purchase programme: an early assessment
Country-level effects of the ECB's expanded asset purchase programme
The macroeconomic effects of large-scale asset purchase programs
The macroeconomic impact of the ECB's expanded asset purchase programme (APP)
Tracing the impact of the ECB's asset purchase programme on the yield curve
Tracing the impact of the ECB's asset purchase programme on the yield curve