Negative monetary policy rates and systemic banks’ risk-taking :
evidence from the euro area securities register

dc.contributor.author Bubeck, Johannes
dc.contributor.author Maddaloni, Angela
dc.contributor.author Peydró, José-Luis
dc.date.accessioned 2020-04-14T12:11:11Z
dc.date.available 2020-04-14T12:11:11Z
dc.date.issued 2020-03-27
dc.description.abstract We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit the introduction of negative deposit rates by the European Central Bank in June 2014 and a novel securities register for the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as they do not pass negative rates to retail customers, in turn investing more in securities, especially in those yielding higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and dollar-denominated securities. Affected banks also take higher risk in loans.ca
dc.format.mimetype application/pdf*
dc.identifier.uri http://hdl.handle.net/10230/44213
dc.language.iso engca
dc.relation.ispartofseries Barcelona GSE Working Paper;1128
dc.rights.accessRights info:eu-repo/semantics/openAccessca
dc.subject.other Negative ratesca
dc.subject.other Non-standard monetary policyca
dc.subject.other Reach-for-yieldca
dc.subject.other Securitiesca
dc.subject.other Banksca
dc.title Negative monetary policy rates and systemic banks’ risk-taking : evidence from the euro area securities registerca
dc.type info:eu-repo/semantics/workingPaperca

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