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The negative interest rate policy in the euro area and the supply of bank loans

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  • M. de Sola Perea
  • M. Kasongo Kashama

Abstract

Despite having a policy rate in negative territory for more than three years now, euro area banks are still paying positive interest rates on customers’ deposits. What explains this? And what can it imply for the access to bank loans?

Suggested Citation

  • M. de Sola Perea & M. Kasongo Kashama, 2017. "The negative interest rate policy in the euro area and the supply of bank loans," Economic Review, National Bank of Belgium, issue iii, pages 42-61, december.
    • Handle: RePEc:nbb:ecrart:y:2017:m:december:i:iii:p:42-61
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    File URL: https://www.nbb.be/en/articles/negative-interest-rate-policy-euro-area-and-supply-bank-loans
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    References listed on IDEAS

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    1. Boeckx, Jef & de Sola Perea, Maite & Peersman, Gert, 2020. "The transmission mechanism of credit support policies in the euro area," European Economic Review, Elsevier, vol. 124(C).
    2. Ben S. Bernanke & Mark Gertler, 1995. "Inside the Black Box: The Credit Channel of Monetary Policy Transmission," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 27-48, Fall.
    3. Arteta,Carlos & Kose,Ayhan & Stocker,Marc & Taskin,Temel, 2016. "Negative interest rate policies : sources and implications," Policy Research Working Paper Series 7791, The World Bank.
    4. Carlo Altavilla & Giacomo Carboni & Roberto Motto, 2021. "Asset Purchase Programs and Financial Markets: Lessons from the Euro Area," International Journal of Central Banking, International Journal of Central Banking, vol. 17(70), pages 1-48, October.
    5. Morten Linnemann Bech & Aytek Malkhozov, 2016. "How have central banks implemented negative policy rates?," BIS Quarterly Review, Bank for International Settlements, March.
    6. Baldo, Luca & Hallinger, Benoît & Helmus, Caspar & Herrala, Niko & Martins, Débora & Mohing, Felix & Petroulakis, Filippos & Resinek, Marc & Vergote, Olivier & Usciati, Benoît & Wang, Yizhou, 2017. "The distribution of excess liquidity in the euro area," Occasional Paper Series 200, European Central Bank.
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    Cited by:

    1. Schelling, Tan & Towbin, Pascal, 2022. "What lies beneath—Negative interest rates and bank lending," Journal of Financial Intermediation, Elsevier, vol. 51(C).
    2. Bank for International Settlements, 2019. "Unconventional monetary policy tools: a cross-country analysis," CGFS Papers, Bank for International Settlements, number 63, december.
    3. Grahame Johnson & Sharon Kozicki & Romanos Priftis & Lena Suchanek & Jonathan Witmer & Jing Yang, 2020. "Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature," Discussion Papers 2020-16, Bank of Canada.
    4. repec:nbb:ecrart:y:2017:m:september:i:iii:p:35-56 is not listed on IDEAS
    5. J. Boeckx & M. de Sola Perea & M. Deroose & G. de Walque & Th. Lejeune & Ch. Van Nieuwenhuyse, 2018. "What will happen when interest rates go up?," Economic Review, National Bank of Belgium, issue iii, pages 35-56, september.

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