Access policy and money market segmentation
AbstractWe analyse deviations between interest rates paid in the Swiss franc unsecured money market and the respective Libor rate. First, banks that have access to the secured interbank market and the SNB's monetary policy operations pay less than banks without access. Second, domestically unchartered, foreign banks pay more than domestic banks. We find that these segmentations are limited both during normal times and during the financial crisis starting 2007 thanks to open access to the secured interbank market and the SNB's monetary policy operations. These findings reveal that a neglected aspect of monetary policy implementation matters, namely access policy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Swiss National Bank in its series Working Papers with number 2012-12.
Length: 32 pages
Date of creation: 2012
Date of revision:
Contact details of provider:
Postal: Börsenstrasse 15, P. O. Box, CH - 8022 Zürich
Phone: +41 44 631 31 11
Fax: +41 44 631 39 11
Web page: http://www.snb.ch/en/ifor/research/
More information through EDIRC
access to central bank money; unsecured interbank money market; money market integration and segmentation; financialcrisis;
Find related papers by JEL classification:
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-11-03 (All new papers)
- NEP-CBA-2012-11-03 (Central Banking)
- NEP-EEC-2012-11-03 (European Economics)
- NEP-MAC-2012-11-03 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gara Afonso & Anna Kovner & Antoinette Schoar, 2011.
"Stressed, Not Frozen: The Federal Funds Market in the Financial Crisis,"
Journal of Finance, American Finance Association,
American Finance Association, vol. 66(4), pages 1109-1139, 08.
- Gara Afonso & Anna Kovner & Antoinette Schoar, 2010. "Stressed, not frozen: the Federal Funds market in the financial crisis," Staff Reports, Federal Reserve Bank of New York 437, Federal Reserve Bank of New York.
- Peter Stella & Seiichi Shimizu & Simon Gray & Ulrich H. Klueh & Alexandre Chailloux, 2008. "Central Bank Response to the 2007-08 Financial Market Turbulence," IMF Working Papers, International Monetary Fund 08/210, International Monetary Fund.
- Gary Gorton & Andrew Metrick, 2009.
"Securitized Banking and the Run on Repo,"
Yale School of Management Working Papers, Yale School of Management
amz2358, Yale School of Management, revised 01 Sep 2009.
- Gorton, Gary & Metrick, Andrew, 2012. "Securitized banking and the run on repo," Journal of Financial Economics, Elsevier, Elsevier, vol. 104(3), pages 425-451.
- Gary Gorton & Andrew Metrick, 2010. "Securitized Banking and the Run on Repo," NBER Chapters, National Bureau of Economic Research, Inc, in: Market Institutions and Financial Market Risk National Bureau of Economic Research, Inc.
- Adam Copeland & Antoine Martin & Michael Walker, 2010. "The tri-party repo market before the 2010 reforms," Staff Reports, Federal Reserve Bank of New York 477, Federal Reserve Bank of New York.
- Raphael Auer & Sébastien Kraenzlin, 2011.
"International liquidity provision during the financial crisis: a view from Switzerland,"
Review, Federal Reserve Bank of St. Louis,
Federal Reserve Bank of St. Louis, issue Nov, pages 409-418.
- Raphael Auer & Sebastien Kraenzlin, 2011. "International liquidity provision during the financial crisis: a view from Switzerland," Globalization and Monetary Policy Institute Working Paper, Federal Reserve Bank of Dallas 75, Federal Reserve Bank of Dallas.
- Paolo Angelini & Andrea Nobili & Cristina Picillo, 2011.
"The Interbank Market after August 2007: What Has Changed, and Why?,"
Journal of Money, Credit and Banking, Blackwell Publishing,
Blackwell Publishing, vol. 43(5), pages 923-958, 08.
- Paolo Angelini & Andrea Nobili & Maria Cristina Picillo, 2009. "The interbank market after August 2007: what has changed, and why?," Temi di discussione (Economic working papers), Bank of Italy, Economic Research and International Relations Area 731, Bank of Italy, Economic Research and International Relations Area.
- Sébastien Philippe Kraenzlin & Benedikt von Scarpatetti, 2011. "Bargaining Power in the Repo Market," Working Papers, Swiss National Bank 2011-14, Swiss National Bank.
- Jean-Charles Rochet & Jean Tirole, 1996.
"Interbank lending and systemic risk,"
Proceedings, Board of Governors of the Federal Reserve System (U.S.),
Board of Governors of the Federal Reserve System (U.S.), pages 733-765.
- Rochet, Jean-Charles & Tirole, Jean, 1996. "Interbank Lending and Systemic Risk," Journal of Money, Credit and Banking, Blackwell Publishing, Blackwell Publishing, vol. 28(4), pages 733-62, November.
- Basil Guggenheim & Sébastien Philippe Kraenzlin & Silvio Schumacher, 2011. "Exploring an uncharted market: Evidence on the unsecured Swiss franc money market," Working Papers, Swiss National Bank 2011-05, Swiss National Bank.
- Raphael Auer & Sebastien Kraenzlin & David Liebeg, 2012. "How Do Austrian Banks Fund Their Swiss Franc Exposure?," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), Oesterreichische Nationalbank (Austrian Central Bank), issue 24, pages 54-61.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Enzo Rossi).
If references are entirely missing, you can add them using this form.