Bubeck, Johannes; Maddaloni, Angela; Peydró, José-Luis - In: Journal of Money, Credit and Banking 52 (2020) S1, pp. 197-231
We show that negative monetary policy rates induce systemic banks to reach‐for‐yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private‐sector (financial and nonfinancial) securities and …