Dutch paper examines bank responses to wholesale funding shocks
Research exploits data on 181 banks from August 2007 to June 2013
Bank characteristics matter for monetary transmission, according to a working paper published by The Netherlands Bank that examines their relationship with wholesale funding.
In Lenders on the storm of wholesale funding shocks: Saved by the central bank? Leo de Haan, Jan Willem van den End and Philip Vermeulen examine eurozone banks' responses to shocks in wholesale funding between August 2007 and June 2013.
The authors find shocks in the securities and interbank markets have "significant
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