Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208277
Authors: 
Amzallag, Adrien
Calza, Alessandro
Georgarakos, Dimitris
Sousa, João
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper 2243
Abstract: 
Do negative policy rates hinder banks' transmission of monetary policy? To answer this question, we examine the behaviour of Italian mortgage lenders using a novel loan-level dataset. When policy rates turn negative, banks with higher ratios of retail overnight deposits to total assets charge more on new fixed rate mortgages. This suggests that the funding structure of banks may matter for the transmission of negative policy rates, especially for long-maturity illiquid assets. Nevertheless, the aggregate economic implications for households are small, suggesting that concerns about inefficient monetary policy transmission to households under modestly negative rates are likely overstated.
Subjects: 
monetary policy
negative interest rates
bank lending
mortgages ECB
JEL: 
E40
E52
E58
G21
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3505-0
Document Type: 
Working Paper

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