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, 118. p. 102475. DOI https://doi.org/10.1016/j.jimonfin.2021.102475
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, 118. p. 102475. DOI https://doi.org/10.1016/j.jimonfin.2021.102475
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, 118. p. 102475. DOI https://doi.org/10.1016/j.jimonfin.2021.102475
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 Faculty of Social Sciences > Essex Business School |
| SWORD Depositor: | Unnamed user with email elements@essex.ac.uk |
| Depositing User: | Unnamed user with email elements@essex.ac.uk |
| Date Deposited: | 03 Aug 2021 15:07 |
| Last Modified: | 02 Feb 2023 02:00 |
| URI: | http://repository.essex.ac.uk/id/eprint/30811 |
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