Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/208283
Authors: 
Alcaraz, Carlo
Claessens, Stijn
Cuadra, Gabriel
Marqués Ibáñez, David
Sapriza, Horacio
Year of Publication: 
2019
Series/Report no.: 
ECB Working Paper 2249
Abstract: 
We assess how a major, unconventional central bank intervention, Draghi's "whatever it takes" speech, affected lending conditions. Similar to other large interventions, it responded to adverse financial and macroeconomic developments that also influenced the supply and demand for credit. We avoid such endogeneity concerns by focusing on a third country and comparing lending conditions by euro area and other banks to the same borrower. We show that the intervention reversed prior risk-taking - in volume, price, and loan credit ratings - by subsidiaries of euro area banks relative to local and other foreign banks. Our results document a new effect of large central banks' interventions and are robust along many dimensions.
Subjects: 
Unconventional monetary policy
credit conditions
spillovers
JEL: 
E51
G21
F34
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-3511-1
Document Type: 
Working Paper

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