Bubeck, JohannesMaddaloni, AngelaPeydró, José-Luis2021-03-012021-03-012020Bubeck J, Maddaloni A, Peydró JL. Negative monetary policy rates and systemic banks' risk‐taking: evidence from the euro area securities register. J Money Credit Bank. 2020 Oct;52(S1):197-231. DOI: 10.1111/jmcb.127400022-2879http://hdl.handle.net/10230/46633We 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 nonfinancial) securities and dollar‐denominated securities. Affected banks also take higher risk in loans.application/pdfeng© 2021 The Authors. Journal of Money, Credit and Banking published by Wiley Periodicals LLC on behalf of Ohio State University. This is an open access article under the terms of the Creative Commons Attribution License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited.info:eu-repo/semantics/articlehttp://dx.doi.org/10.1111/jmcb.12740Negative ratesNonstandard monetary policyReach‐for‐yieldSecuritiesBanksinfo:eu-repo/semantics/openAccess