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dc.rights.licenseopenen_US
hal.structure.identifierLaboratoire d'analyse et de recherche en économie et finance internationales [Larefi]
dc.contributor.authorBOUNGOU, Whelsy
dc.contributor.authorHUBERT, Paul
dc.date.accessioned2022-01-11T10:14:41Z
dc.date.available2022-01-11T10:14:41Z
dc.date.issued2020-10-01
dc.identifier.issn0165-1889en_US
dc.identifier.urioai:crossref.org:10.1016/j.jedc.2021.104228
dc.identifier.urioai:crossref.org:10.2139/ssrn.3662539
dc.identifier.urihttps://oskar-bordeaux.fr/handle/20.500.12278/124349
dc.description.abstractEnFaced with a potential zero lower bound on deposit interest rates, how do banks pass on the fall in net interest income due to negative interest rates? This paper aims to investigate the different channels of banks’ responses to negative interest rates using a detailed breakdown of the profit and loss account of 3637 banks in 59 countries from 2011 to 2018. We find that the decrease in interest income due to negative interest rates is mitigated by an increase in non-interest income, but only partially. We find that banks respond to that shock by reducing the interest paid on non-customer deposit liabilities and their personnel expenses. We also show that banks’ responses are not instantaneous and that they adjust their response as negative interest rates persist over time such that how long negative interest rates are implemented matters. Finally, our results suggest that large banks with higher deposits and higher leverage ratios are the most affected by the implementation of negative interest rates.
dc.language.isoENen_US
dc.sourcecrossref
dc.subject.enBank profitability
dc.subject.enInterest flows
dc.subject.enNon-interest flows
dc.subject.enDeposits
dc.subject.enLeverage
dc.title.enThe channels of banks’ response to negative interest rates
dc.typeArticle de revueen_US
dc.identifier.doi10.1016/j.jedc.2021.104228en_US
dc.subject.halÉconomie et finance quantitative [q-fin]en_US
dc.subject.jelC - Mathematical and Quantitative Methods::C2 - Single Equation Models; Single Variablesen_US
dc.subject.jelE - Macroeconomics and Monetary Economics::E5 - Monetary Policy, Central Banking, and the Supply of Money and Crediten_US
dc.subject.jelG - Financial Economics::G2 - Financial Institutions and Servicesen_US
bordeaux.journalJournal of Economic Dynamics and Controlen_US
bordeaux.page104228en_US
bordeaux.volume131en_US
bordeaux.hal.laboratoriesLaboratoire d'analyse et de recherche en économie et finance internationales (LAREFI) - EA2954en_US
bordeaux.institutionUniversité de Bordeauxen_US
bordeaux.peerReviewedouien_US
bordeaux.inpressnonen_US
bordeaux.import.sourcedissemin
hal.identifierhal-03520719
hal.version1
hal.date.transferred2022-01-11T10:14:43Z
hal.exporttrue
workflow.import.sourcedissemin
dc.rights.ccPas de Licence CCen_US
bordeaux.COinSctx_ver=Z39.88-2004&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.jtitle=Journal%20of%20Economic%20Dynamics%20and%20Control&rft.date=2020-10-01&rft.volume=131&rft.spage=104228&rft.epage=104228&rft.eissn=0165-1889&rft.issn=0165-1889&rft.au=BOUNGOU,%20Whelsy&HUBERT,%20Paul&rft.genre=article


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