Is bank resilience affected by unconventional monetary policy in the Euro area?

Avalos, Fernando; Mamatzakis, Emmanuel

doi:10.1016/j.jimonfin.2022.102762

Cited by 4 publications

(2 citation statements)

References 116 publications

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“…A higher economic growth is related to an increase of the demand for loans by households and firms (Petria et al, 2015), which could be translated to a higher bank profitability. Economic growth is proxied by the real GDP growth (Avalos & Mamatzakis, 2018; Bikker & Hu, 2002; García‐Herrero et al, 2009; Mamatzakis & Bermpei, 2016). An increase in the consumer price index may affect not only wages but also other costs of financial institutions (Revell, 1979).…”

Section: Data and Variablesmentioning

confidence: 99%

Nonstandard monetary policies and bank profitability: The case of Spain

Tercero‐Lucas

2021

Int. J Fin Econ

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The aim of this study is to examine the effects of non-standard monetary policy measures implemented by the Eurosystem on the Spanish banking sector profitability. To do this, a new database is built merging data from the Spanish Banking Industry Statistical Yearbook and from the Spanish Stock Market Commission. Applying different econometric techniques to a panel of 54 Spanish banks that covers the period 2001-2017 and controlling for bank-specific factors and macroeconomic conditions, no discernible impact is found between the Eurosystem's non-standard monetary policy measures (ECB's total assets, excess reserves and the slope of the yield curve) and bank profitability measured as return on assets, pre-tax operating income and interest margins. This result is robust to different specifications and to different groups of banks.

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Section: Data and Variablesmentioning

confidence: 99%

Nonstandard monetary policies and bank profitability: The case of Spain

Tercero‐Lucas

2021

Int. J Fin Econ

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“…Following Avalos and Mamatzakis (2018) from the BIS and Jouvanceau ( 2019) from the Bank of Lithuania, we will frame QE programs therefore as an exogenous supply of excess reserves. This way of modeling QE programs is much closer to actual QE programs than any alternative in the literature, which ensures liquidity provision that is supply-induced rather than demand-induced.…”

Section: Identification Of Exogenous Shocks and Estimation Of Irs Wit...mentioning

confidence: 99%

Is Quantitative Easing Productive? The Role of Bank Lending in the Monetary Transmission Process

Roderweis,

Saadaoui,

Serranito

2023

SSRN Journal

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Bank Lending and Policy Interactions—A Comprehensive Assessment for the G20 Countries

Gramlich,

Yan,

Zhang

2024

Int. J Fin Econ

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This study examines the joint impact from supervisory requirements, monetary policies and rescue packages on the supply of bank loans. Evidence is obtained from conceptual considerations and the empirical investigation of G20 banks over the period 1995–2021. To prepare the analysis of interactions, we first address modelling concepts and consistently identify the effects on bank lending that come from each of the regulatory approaches in isolation. Second, we empirically assess the effects that result from the parallel application of policy actions. Short‐term liquidity ratios in combination with further variables mostly associate with positive interaction effects. In contrast, the joint assessment of long‐term liquidity ratios as well as leverage ratios with other policy actions usually provides negative effects. Overall, the results suggest that unconventional monetary policy and rescue actions can stimulate bank lending only after the institutions have restored their own stability. Interactions of policy actions matter, and both regulatory authorities and bank management should consider them.

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Is bank resilience affected by unconventional monetary policy in the Euro area?

Cited by 4 publications

References 116 publications

Nonstandard monetary policies and bank profitability: The case of Spain

Nonstandard monetary policies and bank profitability: The case of Spain

Is Quantitative Easing Productive? The Role of Bank Lending in the Monetary Transmission Process

Bank Lending and Policy Interactions—A Comprehensive Assessment for the G20 Countries

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