Acharya, Viral V.; Imbierowicz, Björn; Steffen, Sascha; … - 2019
We investigate the transmission of central bank liquidity to bank deposits and loan spreads in Europe over the January … 2006 to June 2010 period. We find evidence consistent with an impaired transmission channel due to bank risk. Central bank … low-risk banks. This adversely affects the balance sheets of high-risk bank borrowers, leading to lower payouts, lower …