To whom do banks channel central bank funds?
Autor(en): | Bednarek, Peter Dinger, Valeriya te Kaat, Daniel Marcel von Westernhagen, Natalja |
Stichwörter: | Bank lending; Business & Economics; Business, Finance; COSTS; Credit risk-taking; CRISIS; DEBT; Economics; FIRM; IMPACT; LIQUIDITY; LTRO; Monetary policy; MONETARY-POLICY; Real effects; RISK-TAKING; TFP growth | Erscheinungsdatum: | 2021 | Herausgeber: | ELSEVIER | Journal: | JOURNAL OF BANKING & FINANCE | Volumen: | 128 | Zusammenfassung: | This paper examines the relationship between central bank funding and credit risk-taking. Employing bank-firm-level data from the German credit registry during 2009:Q1-2014:Q4, we find that banks borrowing from the central bank rebalance their portfolios towards ex-ante riskier firms. We further establish that this effect is driven by the ECB's maturity extensions and that the risk-taking sensitivity of banks borrowing from the ECB is independent of idiosyncratic bank characteristics. Finally, we show that these shifts in bank lending are associated with an increase in firm-level investment and employment, but also with a deterioration of bank balance sheet quality in the following year. (c) 2021 Elsevier B.V. All rights reserved. |
ISSN: | 03784266 | DOI: | 10.1016/j.jbankfin.2021.106082 |
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geprüft am 14.05.2024