Central bank funding and credit risk-taking

Arbeitspapier

This paper examines the relationship between central bank funding and credit risk-taking. Employing comprehensive bank-firm-level data from the German credit registry during 2009:Q1-2014:Q4, we find that borrowing from the central bank is associated with rebalancing of bank portfolios towards ex-ante riskier firms. We further establish that this relationship is associated with the ECB's maturity extensions and that the risk-taking sensitivity of banks borrowing from the ECB is independent of idiosyncratic bank characteristics. Finally, we highlight that these shifts in bank lending might lead to an ex-post deterioration of bank balance sheets, but increase firm-level investment and employment.

Angaben zum Objekt

• ISBN: 978-3-95729-734-1
• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Deutsche Bundesbank Discussion Paper ; No. 36/2020

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Markets and the Macroeconomy ; Monetary Policy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Economic Growth and Aggregate Productivity: General
• Thema: Monetary Policy ; LTRO ; Bank Lending ; Credit Risk-Taking ; Real Effects ; TFP Growth

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Bednarek, Peter ; Dinger, Valeriya ; te Kaat, Daniel Marcel ; von Westernhagen, Natalja
• Ereignis: Veröffentlichung
• (wer): Deutsche Bundesbank
• (wo): Frankfurt a. M.
• (wann): 2020

Weitere Informationen

• Handle: http://hdl.handle.net/10419/222544
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ