Bottero, MargheritaMinoiu, CameliaPeydró, José-LuisPolo, AndreaPresbitero, Andrea F.Sette, EnricoUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142019-02-22Journal of Financial Economics, 146 (2), Nov. 2022, pp. 754-778, DOI: https://doi.org/10.1016/j.jfineco.2021.11.004http://hdl.handle.net/10230/44756We show that negative interest rate policy (NIRP) has expansionary effects on bank credit supply and firm outcomes through a portfolio rebalancing channel. For identification, we exploit ECB's NIRP and credit register, firm- and bank-level datasets. NIRP affects relatively more banks with higher ex-ante net interbank positions or more liquid balance sheets. More exposed banks reduce liquid assets, expand credit supply to ex-ante riskier firms, and cut rates, inducing sizable firm-level real effects. By shifting down and flattening the yield curve, NIRP differs from rate cuts just above the zero-lower-bound. We find no evidence of a contractionary retail deposit channel.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsExpansionary yet different: credit supply and real effects of negative interest rate policy<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">negative interest rates</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">portfolio rebalancing</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">bank lending channel of monetary policy</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">liquidity management</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">eurozone crisis.</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Finance and Accounting</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Macroeconomics and International Economics</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Labour, Public, Development and Health Economics</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>