Weak eurozone banks hindered monetary policy – Bundesbank paper

“High-risk” banks failed to increase loan spreads despite ECB liquidity injection, researchers say

europe-iw

The transmission of eurozone monetary policy in the financial crisis was impaired by weakly capitalised banks, a working paper published by the Deutsche Bundesbank finds.

In Does the lack of financial stability impair the transmission of monetary policy? former Reserve Bank of India deputy governor Viral Acharya and his co-authors look at data on bank deposits and loan spreads in the eurozone from January 2006 to June 2010.

This period saw the first stage of the global financial crisis

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.