Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208236
Authors: 
Altavilla, Carlo
Boucinha, Miguel
Holton, Sarah
Ongena, Steven
Year of Publication: 
2018
Series/Report no.: 
ECB Working Paper 2202
Abstract: 
Do borrowers demand less credit from banks with weak balance sheet positions? To answer this question we use novel bank-specific survey data matched with confidential balance sheet information on a large set of euro area banks. We find that, following a conventional monetary policy shock, bank balance sheet strength influences not only credit supply but also credit demand. The resilience of lenders plays an important role for firms when selecting whom to borrow from. We also assess the impact on credit origination of unconventional monetary policies using survey responses on the exposure of individual banks to quantitative easing and negative interest rate policies. We find that both policies do stimulate loan supply even after fully controlling for bank-specific demand, borrower quality, and balance sheet strength.
Subjects: 
credit demand and supply
bank lending survey
balance sheet strength
nonstandard monetary policy
JEL: 
E51
G21
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3307-0
Document Type: 
Working Paper

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