IDEAS home Printed from https://ideas.repec.org/a/voj/journl/v68y2021i3p293-323id871.html
   My bibliography  Save this article

Monetary Policy and Bank Lending in Euro Area since the Outset of the Global Financial Crisis

Author

Listed:
  • Agata Wierzbowska

Abstract

In this article, we present the impact of the monetary policy stance of the European Central Bank (ECB) since 2007 on bank lending in the euro area and compare the effects of the main measures: interest rate changes, liquidity provision, and asset purchase programmes. We also analyse the channels through which monetary policy might influence the banking system and narrow our focus to the individual countries. The main results indicate stimulating impact of ECB’s policy stance on bank lending that extends its influence mainly through interest rate cuts further supported by the liquidity provision and asset purchase programmes. However, we also find considerable differences across the member states, often depending on the state of the banking system and loan demand in the member state. The results support the variety of monetary policy measures introduced by the ECB, as each played its own role in supporting the banking system and encouraging bank lending in the euro area. Keywords: Unconventional monetary policy, Bank lending, Monetary transmission, EMU, Synthetic indicator.JEL: E50, E52, E58, G21.

Suggested Citation

  • Agata Wierzbowska, 2021. "Monetary Policy and Bank Lending in Euro Area since the Outset of the Global Financial Crisis," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 68(3), pages 293-323.
    • Handle: RePEc:voj:journl:v:68:y:2021:i:3:p:293-323:id:871
    as

    Download full text from publisher

    File URL: https://panoeconomicus.org/index.php/jorunal/article/view/871/655
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Unconventional monetary policy; Bank lending; Monetary transmission; EMU; Synthetic indicator;
    All these keywords.

    JEL classification:

    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • 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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:voj:journl:v:68:y:2021:i:3:p:293-323:id:871. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ivana Horvat (email available below). General contact details of provider: https://panoeconomicus.org/index.php/jorunal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.