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Andreeva, Desislava éC. [Author]; Coman, Andra [Author]; Everett, Mary [Author]; Froemel, Maren [Author]; Ho, Kelvin [Author]; Lloyd, Simon [Author]; Meunier, Baptiste [Author]; Pedrono, Justine [Author]; Reinhardt, Dennis [Author]; Wong, Andrew [Author]; Wong, Eric [Author]; çZochowski, Dawid [Author]

Negative rates, monetary policy transmission and cross-border lending via international financial centres

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  • Media type: E-Book; Report
  • Title: Negative rates, monetary policy transmission and cross-border lending via international financial centres
  • Contributor: Andreeva, Desislava éC. [Author]; Coman, Andra [Author]; Everett, Mary [Author]; Froemel, Maren [Author]; Ho, Kelvin [Author]; Lloyd, Simon [Author]; Meunier, Baptiste [Author]; Pedrono, Justine [Author]; Reinhardt, Dennis [Author]; Wong, Andrew [Author]; Wong, Eric [Author]; çZochowski, Dawid [Author]
  • Published: Frankfurt a. M.: European Central Bank (ECB), 2023
  • Language: English
  • DOI: https://doi.org/10.2866/350963
  • Keywords: Risk-taking ; Monetary policy ; Cross-border lending ; Negative interest rates ; F36 ; F34 ; International financial centres ; G21 ; Bank lending ; F42 ; E52
  • Origination:
  • Footnote: Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
  • Description: We study the effects of negative interest rate policies (NIRP) on the transmission of monetary policy through cross-border lending. Using bank-level data from international financial centres - the United Kingdom, Hong Kong and Ireland - we examine how NIRP in the economies where banks have their headquarters influences cross-border lending from financial-centre affiliates. We find that NIRP impairs the bank-lending channel for cross-border lending to non-bank sectors, especially for those banks that have only a weak deposit base in IFCs - and are thus relatively more exposed to NIRP in their headquarters. Using euro-area data, including bank-level data from France, we find that NIRP does not influence overall cross-border lending from banks' headquarters' economies, but NIRP does impair lending to financial sectors based in IFCs. This impairment is stronger for banks with a large deposit base in headquarter economies exposed to NIRP.
  • Access State: Open Access