Publication:
Unconventional monetary policy, competition and financial stability. Evidence from the Eurozone banks

Date

2020

Authors

Director

Publisher

Asociación Internacional de Economía Aplicada (ASEPELT)
Acceso abierto / Sarbide irekia
Artículo / Artikulua
Versión aceptada / Onetsi den bertsioa

Project identifier

ES/1PE/ECO2016-77631-R

Abstract

This article analyses the effects of the ECB’s negative interest rates (or unconventional) policy on the degree of banking competition, lending and deposit supply, and financial stability. Using a dataset comprising 191 Eurozone banks for the 2002Q1-2016Q4 period, our results suggest that negative interest rates (i) increase banks’ lending and deposit supply, (ii) reduce banking competition, and (iii) weaken financial stability. This phenomenon is economically more significant for periphery country banks than for core country banks.

Description

Keywords

Bank competition, Financial stability, Lending and deposit supply, Negative interest rates, Quantitative easing

Department

Gestión de Empresas / Enpresen Kudeaketa

Faculty/School

Degree

Doctorate program

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