Unconventional policy may reduce bank resilience, BIS paper finds

European Union flags

Unconventional monetary policy may have reduced overall bank resilience in the eurozone, a Bank of International Settlements paper finds.

Fernando Avalos and Emmanuel C Mamatzakis use bank-level data of the size of loss-absorbing buffers to estimate bank resilience. They cross-reference the buffer’s relationship with unconventional monetary policy data.  

The authors find that quantitative easing enhances bank-level resilience in “core” eurozone countries, such as France, Germany, Luxembourg

To continue reading...

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 indvidual account here: