학술논문
Central bank reserves and bank lending spreads.
Document Type
Article
Source
Subject
*Bank reserves
*Central banking industry
*Interest rates
*Foreign exchange reserves
*Financial crises
*Banking industry
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Language
ISSN
1350-4851
Abstract
Since the financial crisis, central bank reserves in the financial system have increased considerably and nowadays represent a significant part of banks' total assets. We provide empirical evidence that an increase in reserves lowers banks' lending spreads, i.e. interest rates relative to maturity-matched risk-free rates. Consequently, our analysis shows that central banks can affect bank lending conditions not only by changing the policy rate but also via the quantity of reserves. [ABSTRACT FROM AUTHOR]