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The ECB's QE and euro cross-border bank lending

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Listed:
  • Stefan Avdjiev
  • Agnė Subelytė
  • Előd Takáts

Abstract

There is growing evidence that the currency distribution of cross-border credit affects international monetary policy spillovers. While the existing literature has concentrated primarily on the US dollar, this article focuses on the euro. We find that the ECB's quantitative easing of January 2015 had a larger positive impact on cross-border bank credit in lender-borrower pairs with a higher share of euro-denominated bank claims. The effect was especially pronounced for lending to advanced economies outside the euro area. By contrast, the estimated effects on cross-border lending to EME borrowers were insignificant.

Suggested Citation

  • Stefan Avdjiev & Agnė Subelytė & Előd Takáts, 2016. "The ECB's QE and euro cross-border bank lending," BIS Quarterly Review, Bank for International Settlements, September.
    • Handle: RePEc:bis:bisqtr:1609h
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    References listed on IDEAS

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    Cited by:

    1. Takáts, Előd & Temesvary, Judit, 2020. "The currency dimension of the bank lending channel in international monetary transmission," Journal of International Economics, Elsevier, vol. 125(C).
    2. Takáts, Előd & Temesvary, Judit, 2021. "How does the interaction of macroprudential and monetary policies affect cross-border bank lending?," Journal of International Economics, Elsevier, vol. 132(C).
    3. Alper, Koray & Altunok, Fatih & Çapacıoğlu, Tanju & Ongena, Steven, 2020. "The Effect of Unconventional Monetary Policy on Cross-Border Bank Loans: Evidence from an Emerging Market," European Economic Review, Elsevier, vol. 127(C).
    4. Isabel Argimón, 2018. "The relevance of currency-denomination for the cross-border effects of monetary policy," Working Papers 1827, Banco de España.

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