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Bank business models at negative interest rates

Author

Listed:
  • Schwaab, Bernd

Abstract

Not all banks are the same. They differ in terms of size, complexity, organisation, activities, funding choices and geographical reach. This article shows how changes in the yield curve and reductions in the ECB’s deposit facility rate (DFR) to negative values have affected different types of banks in different ways, thus giving rise to different market perceptions of banks’ risks. JEL Classification: C33, G20, G21

Suggested Citation

  • Schwaab, Bernd, 2017. "Bank business models at negative interest rates," Research Bulletin, European Central Bank, vol. 40.
  • Handle: RePEc:ecb:ecbrbu:2017:0040:1
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    File URL: https://www.ecb.europa.eu//pub/economic-research/resbull/2017/html/ecb.rb171122.en.html
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    File URL: https://www.ecb.europa.eu//pub/economic-research/resbull/2017/html/ecb.rb171122.en.pdf
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    References listed on IDEAS

    as
    1. Christian Brownlees & Robert F. Engle, 2017. "SRISK: A Conditional Capital Shortfall Measure of Systemic Risk," Review of Financial Studies, Society for Financial Studies, vol. 30(1), pages 48-79.
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Negative Nominal Interest Rates and Banking
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2018-10-22 12:23:45

    More about this item

    Keywords

    Bank business model; Clustering; Negative interest rates; Systemic risk; Unconventional monetary policy measures;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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