
The tradeoff between monetary policy and bank stability
- Author
- Martien Lamers (UGent) , Frederik Mergaerts, Elien Meuleman (UGent) and Rudi Vander Vennet (UGent)
- Organization
- Abstract
- This paper investigates the transmission of monetary policy to systemic risk of euro-area and U.S. banks between 2008 and 2015. Using market measures of systemic risk and a VAR to obtain monetary policy shocks, we find that accommodative policy generally has a positive effect on bank stability in the euro area but a negative effect in the United States. Different transmission channels are at play: in the euro area the effect works mainly through a stealth recapitalization channel, while in the United States the effect is due to risk-shifting. Moreover, transmission of monetary policy differs across bank business models.
- Keywords
- INTEREST-RATES, BUSINESS MODELS, SYSTEMIC RISK, IMPACT, MARKET, CREDIT, ANNOUNCEMENTS
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-8641543
- MLA
- Lamers, Martien, et al. “The Tradeoff between Monetary Policy and Bank Stability.” INTERNATIONAL JOURNAL OF CENTRAL BANKING, vol. 15, no. 2, 2019, pp. 1–42.
- APA
- Lamers, M., Mergaerts, F., Meuleman, E., & Vander Vennet, R. (2019). The tradeoff between monetary policy and bank stability. INTERNATIONAL JOURNAL OF CENTRAL BANKING, 15(2), 1–42.
- Chicago author-date
- Lamers, Martien, Frederik Mergaerts, Elien Meuleman, and Rudi Vander Vennet. 2019. “The Tradeoff between Monetary Policy and Bank Stability.” INTERNATIONAL JOURNAL OF CENTRAL BANKING 15 (2): 1–42.
- Chicago author-date (all authors)
- Lamers, Martien, Frederik Mergaerts, Elien Meuleman, and Rudi Vander Vennet. 2019. “The Tradeoff between Monetary Policy and Bank Stability.” INTERNATIONAL JOURNAL OF CENTRAL BANKING 15 (2): 1–42.
- Vancouver
- 1.Lamers M, Mergaerts F, Meuleman E, Vander Vennet R. The tradeoff between monetary policy and bank stability. INTERNATIONAL JOURNAL OF CENTRAL BANKING. 2019;15(2):1–42.
- IEEE
- [1]M. Lamers, F. Mergaerts, E. Meuleman, and R. Vander Vennet, “The tradeoff between monetary policy and bank stability,” INTERNATIONAL JOURNAL OF CENTRAL BANKING, vol. 15, no. 2, pp. 1–42, 2019.
@article{8641543, abstract = {{This paper investigates the transmission of monetary policy to systemic risk of euro-area and U.S. banks between 2008 and 2015. Using market measures of systemic risk and a VAR to obtain monetary policy shocks, we find that accommodative policy generally has a positive effect on bank stability in the euro area but a negative effect in the United States. Different transmission channels are at play: in the euro area the effect works mainly through a stealth recapitalization channel, while in the United States the effect is due to risk-shifting. Moreover, transmission of monetary policy differs across bank business models.}}, author = {{Lamers, Martien and Mergaerts, Frederik and Meuleman, Elien and Vander Vennet, Rudi}}, issn = {{1815-4654}}, journal = {{INTERNATIONAL JOURNAL OF CENTRAL BANKING}}, keywords = {{INTEREST-RATES,BUSINESS MODELS,SYSTEMIC RISK,IMPACT,MARKET,CREDIT,ANNOUNCEMENTS}}, language = {{eng}}, number = {{2}}, pages = {{1--42}}, title = {{The tradeoff between monetary policy and bank stability}}, volume = {{15}}, year = {{2019}}, }