Against the background of the great financial crisis, this paper assesses the merits of bank-based versus market-based financing by exploring the relationship between financial structure and systemic risk. The findings indicate that bank-based financial structures are associated with higher...

This paper studies the impact of the negative interest rate policy (NIRP) on euro area banks’ interest rate margins, using bank-individual data for the 2007-2019 period. An important extension to other studies is our breakdown of banks’ interest rate margin into a funding and lending...

Using a panel dataset of euro area banks over the period 2007-2019, we investigate the impact of negative interest rates on bank behavior. In line with the reversal rate literature, we find that negative interest rates squeeze banks’ interest rate margins, which can be attributed to downward...