One size may not fit all: Financial fragmentation and European monetary policies

This article investigates the impact of European Central Bank policies on credits considering financial and banking fragmentation. Using data from past decade, we estimate SVAR models to analyze regional conventional unconventional measures price volume indicators The risk-taking channel is studied using GVAR document national consequences this We find that increase credit in peripheral countries. Monetary alleviate fragmentation, but mostly terms dispersion rather than volume. Finally, imply a rebalancing bank assets favor foreign currency denominated-assets.