Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/265429 
Year of Publication: 
2022
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 33/2022
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
Exploiting confidential data on individual German bank balance-sheets, I analyse what characterises a bank that opts to apply negative interest rates to corporate deposits. The results suggest that banks that are highly exposed to the negative interest rate policy (NIRP), i.e. funded by a larger share of household deposits, are more likely to apply negative corporate deposit rates. Furthermore, I examine whether banks adjusted their fee and commission strategy during the NIRP period and if they do what characterises those banks. My results show that banks adjusted their strategy in deposit business with households during the NIRP period. Compared with before, they generated higher net commission income on their outstanding household deposit holdings.
Subjects: 
Monetary policy transmissions
negative rates
deposits
excess liquidity
interest rate pass-through
fees and commissions
JEL: 
E52
E43
E44
E58
G20
G21
ISBN: 
978-3-95729-907-9
Document Type: 
Working Paper

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