Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/278481 
Year of Publication: 
2023
Series/Report no.: 
ECB Working Paper No. 2805
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
Are central bank tools effective in reaching non-banks with no access to the lender-of-last-resort facilities? Using runs on mutual funds in March 2020 as a laboratory, we show that, following the announcement of large-scale purchases, funds with higher ex ante shares of assets eligible for central bank purchases saw their performance improve by 3.6 percentage points and outflows decrease by 61% relative to otherwise similar funds. Following central bank liquidity provision to banks, the growth rate of repo lending to funds by banks more exposed to the system-wide liquidity crisis was up to five times higher compared to other banks.
Subjects: 
Investment funds
lender of last resort
market maker of last resort
asset purchases
COVID-19 liquidity crisis
JEL: 
E58
G01
G10
G21
G23
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-6068-7
Document Type: 
Working Paper

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