Research Repository

Bank risks and lending outcomes: Evidence from QE

Sclip, Alex and Girardone, Claudia and Beltrame, Federico and Paltrinieri, Andrea (2021) 'Bank risks and lending outcomes: Evidence from QE.' Journal of International Money and Finance. ISSN 0261-5606

[img] Text
Sclip-Girardone-Beltrame-Paltrinieri FINAL.pdf - Accepted Version
Restricted to Repository staff only until 2 February 2023.
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (1MB) | Request a copy

Abstract

This paper investigates the impact of bank risk positions on their lending outcomes during quantitative easing (QE) interventions. We find that after the first and second round of QE, banks with lower default probabilities expand lending more in comparison to their risky counterparts. However, differences were no longer relevant in the third round of QE, which occurred at a time when the banking sector health was improved relative to QE1. Our findings suggest that bank riskiness is important for the transmission of unconventional monetary policy interventions.

Item Type: Article
Uncontrolled Keywords: Bank Risks; Lending; Monetary Policy; Large Scale Asset Purchases; Quantitative Easing; Federal Reserve
Divisions: Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
Depositing User: Elements
Date Deposited: 03 Aug 2021 15:07
Last Modified: 13 Aug 2021 09:15
URI: http://repository.essex.ac.uk/id/eprint/30811

Actions (login required)

View Item View Item