reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …

In 2001, government guarantees for savings banks in Germany were removed following a law suit. We use this natural …/borrower information. The results suggest that banks whose government guarantee was removed reduced credit risk by cutting off the riskiest … borrowers from credit. At the same time, the banks also increased interest rates on their remaining borrowers. The effects are …

This paper provides a simple weekly model of the regular supply of liquidity in the euro area, with a view to … understanding the functioning of the euro area money market. The main result of the analysis is that liquidity has normally been … deviations of the overnight rate from the main refinancing rate. Moreover the paper finds that liquidity has affected the …

of the maintenance period (MP) and banks’ daily excess liquidity, (ii) giving insight into banks’ trading behavior … use panel data covering liquidity data of 82 Euro Area commercial banks for the period 03/2003 - 07/2007. With the … market trading and assess the effectiveness of the ECB liquidity policy between 07/2007 - 08/2008. We extend the model of [QM …

this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal …Heterogeneity in the response of banks to a change in monetary policy is an important element in the transmission of … factors influencing banks’ reaction in terms of lending and risk-taking to monetary policy impulses. The ultimate impact of a …