Manuel Buchholz (Autor), Kirsten Schmidt (Autor), Lena Tonzer (Autor)
Do conventional monetary policy instruments matter in unconventional times?
This paper investigates how declines in the deposit facility rate set by the ECB affect euro area banks' incentives to hold reserves at the central bank. We find that, in the face of lower deposit rates, banks with a more interest-sensitive business model are more likely to reduce reserve holdings and ...
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