To whom do banks channel central bank funds?
نویسندگان
چکیده
This paper examines the relationship between central bank funding and credit risk-taking. Employing bank-firm-level data from German registry during 2009:Q1-2014:Q4, we find that banks borrowing rebalance their portfolios towards ex-ante riskier firms. We further establish this effect is driven by ECB’s maturity extensions risk-taking sensitivity of ECB independent idiosyncratic characteristics. Finally, show these shifts in lending are associated with an increase firm-level investment employment, but also a deterioration balance sheet quality following year.
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ژورنال
عنوان ژورنال: Journal of Banking and Finance
سال: 2021
ISSN: ['1872-6372', '0378-4266']
DOI: https://doi.org/10.1016/j.jbankfin.2021.106082