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.
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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:
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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)
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