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Did quantitative easing boost bank lending? The Slovak experience

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  • Lojschova, Adriana

Abstract

We find evidence that households in Slovakia do benefit from the ECB asset purchase programme. On the individual bank-level data of 26 financial institutions (full representation of the banking sector) we establish and confirm a traditional relationship between bank lending and changes to deposit ratio. We find the long-run relationship to be twice as strong in the household sector as in the sector of non-financial corporations. Controlling for interest rate changes and other factors, we also introduce asset purchases into the model. We document some, although limited, evidence of the presence of the bank lending channel of asset purchases in the household sector.

Suggested Citation

  • Lojschova, Adriana, 2017. "Did quantitative easing boost bank lending? The Slovak experience," MPRA Paper 79567, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79567
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    References listed on IDEAS

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    1. Butt, Nick & Churm, Rohan & McMahon, Michael & Morotz, Arpad & Schanz, Jochen, 2014. "QE and the bank lending channel in the United Kingdom," Bank of England working papers 511, Bank of England.
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    7. Lojschova, Adriana, 2016. "Kapitálový trh na Slovensku
      [Capital markets in Slovakia]      ," MPRA Paper 79568, University Library of Munich, Germany.
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    Cited by:

    1. Machiel van Dijk & Andrei Dubovik, 2018. "Effects of Unconventional Monetary Policy on European Corporate Credit," CPB Discussion Paper 372, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    Keywords

    Bank lending channel; quantitative easing; panel data;

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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