We study the impact of increasingly negative central bank policy rates on banks' propensity to become undercapitalized …

hampered the smooth transmission of accommodative monetary policy. Using bank level data from 2007 to 2015, we directly measure … bank in the same month for loans to small and large firms (the "Small Firm Financing Premium", SFFP). We assess the role … played by both bank and macroeconomic factors in explaining the variation in the SFFP across countries and through time. We …

We show that negative policy rates affect the supply of bank credit in a novel way. Banks are reluctant to pass on … low-deposit banks. As a consequence, the introduction of negative policy rates by the European Central Bank in mid-2014 …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

relationship with their savings bank prior to applying for a loan, default significantly less than customers with no prior …

Central Bank’s policy-rate cuts in mid-2014. The pass-through of the rate cuts to banks’ funding costs differs across the euro … provide a simple model of an augmented bank balance-sheet channel where in addition to costly external financing, there is …

explain about two-thirds of the variation of bank capitalization over the business cycle. We estimate that provisioning …