Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/229655 
Year of Publication: 
2021
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 02/2021
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
Unconventional monetary policy measures like asset purchase programs aim to reduce certain securities' yield and alter financial institutions' investment behavior. These measures increase the institutions' market value of securities and add to their equity positions. We show that the extent of this recapitalization effect crucially depends on the securities' accounting and valuation methods, country-level regulation, and maturity structure. We argue that future research needs to consider these factors when quantifying banks' recapitalization effects and consequent changes in banks' lending decisions to the real sector.
Subjects: 
Unconventional monetary policy
security valuation
capital regulation
JEL: 
G21
G28
E52
E58
ISBN: 
978-3-95729-810-2
Document Type: 
Working Paper

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