Bank risks and lending outcomes: Evidence from QE

Andrea Paltrinieri, Alex Sclip, Claudia Girardone, Federico Beltrame

Research output: Contribution to journalArticle

Abstract

This paper investigates the impact of bank risk positions on their lending outcomes during quantitative easing (QE) interventions. We find that after the first and second round of QE, banks with lower default probabilities expand lending more in comparison to their risky counterparts. However, differences were no longer relevant in the third round of QE, which occurred at a time when the banking sector health was improved relative to QE1. Our findings suggest that bank riskiness is important for the transmission of unconventional monetary policy interventions.
Original languageEnglish
Pages (from-to)1-10
Number of pages10
JournalJournal of International Money and Finance
DOIs
Publication statusPublished - 2021

Keywords

  • Bank risks
  • Federal reserve
  • Large scale asset purchases
  • Lending
  • Monetary policy
  • Quantitative easing

Fingerprint

Dive into the research topics of 'Bank risks and lending outcomes: Evidence from QE'. Together they form a unique fingerprint.

Cite this