A capital structure channel of monetary policy

• 成果类型: Article
• 署名作者: Grosse-Rueschkamp, Benjamin; Steffen, Sascha; Streitz, Daniel
• 署名单位: European School of Management & Technology; Frankfurt School Finance & Management; Copenhagen Business School; Danish Finance Institute
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2019.03.006
• 发表日期: 2019
• 页码: 357-378
• 关键词: Debt capital structure; Bond debt; unconventional monetary policy; quantitative easing; Real effects

摘要

We study the transmission channels from central banks' quantitative easing programs via the banking sector when central banks start purchasing corporate bonds. We find evidence consistent with a capital structure channel of monetary policy. The announcement of central bank purchases reduces the bond yields of firms whose bonds are eligible for central bank purchases. These firms substitute bank term loans with bond debt, thereby relaxing banks' lending constraints: banks with low tier-1 ratios and high nonperforming loans increase lending to private (and profitable) firms, which experience a growth in investment. The credit reallocation increases banks' risk-taking in corporate credit. (C) 2019 Elsevier B.V. All rights reserved.