Life below Zero: Bank Lending under Negative Policy Rates

• 成果类型: Article
• 署名作者: Heider, Florian; Saidi, Farzad; Schepens, Glenn
• 署名单位: European Central Bank; Stockholm School of Economics
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhz016
• 发表日期: 2019
• 页码: 3727
• 关键词: monetary-policy; risk-taking; channel; transmission

摘要

We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on negative rates to depositors, which increases the funding cost of high-deposit banks, and reduces their net worth, relative to low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 leads to more risk-taking and less lending by euro-area banks with a greater reliance on deposit funding. Our results suggest that negative rates are less accommodative and could pose a risk to financial stability, if lending is done by high-deposit banks.