The Transmission Mechanism of Credit Support Policies in the Euro Area

Abstract

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The bank lending behaviour: Does non-performing loans matter? Evidence from the top-ten banks in the Arab world

“…Messai and Jouini (2013) and Beaton et al (2017) linked NPLs to factors like bank's operating efficiency and profitability in Southern European banks and the Eastern Caribbean Currency Union, respectively. Past research examining the efficacy of focused liquidity support underscores the significance of such measures in mitigating fragmentation and maintaining the steady provision of credit to both households and businesses Manz (2019) and Boeckx, De Sola Perea, and Peersman (2020).…”

Bank lending during the COVID-19 pandemic: A comparison of Islamic and conventional banks

“…Hence, banks were expected to pursue counter-cyclical strategies and continue the flow of credit to support the demand for loans ( Acharya and Steffen, 2020 ; Borio, 2020). As banks’ resilience became more challenging with the persistent COVID-19 conditions, monetary and prudential authorities enacted policy interventions that have been shown in the past to successfully sustain bank lending ( Benetton and Fantino, 2018 , Rostagno et al, 2019 , Boeckx et al, 2020 ). Under these circumstances, we expect banks that operate in countries with macro-prudential policies in place before the crisis to be more resilient.…”

Impact of Targeted Credit Easing by the ECB. Bank-Level Evidence

“…1 Recent literature has examined the effectiveness of these ECB operations. Both untargeted (Andrade et al, 2015;Darracq-Paries and De Santis, 2015;Garcia-Posada and Marchetti, 2015;Casiraghi et al, 2016;Boeckx et al, 2017;De Haan et al, 2017;Jasova et al, 2018) and targeted (Altavilla et al, 2016;Balfoussia and Gibson 2016;Benetton and Fantino 2018) long term refinancing operations by the ECB supported bank lending to the real economy. However, untargeted operations also created unintended effects, such as carry trades through government bond purchases (Carpinelli and Crosignani, 2017;Crosignani et al, 2019;De Haan et al, 2019).…”