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A note of caution on quantifying banks' recapitalization effects

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Bibliographic Details
Authors and Corporations: Schmidt, Kirsten (Author), Noth, Felix (Author), Tonzer, Lena (Author)
Other Authors: Noth, Felix [Author] • Tonzer, Lena [Author]
Type of Resource: E-Book
Language: English
published:
Frankfurt am Main Deutsche Bundesbank [2021]
Series: Deutsche Bundesbank: Discussion paper ; no 2021, 02
Subjects:
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
ISBN: 9783957298102
Description
Summary: Unconventional monetary policy measures like asset purchase programs aim to reduce certain securities' yield and alter financial institutions' investment behavior. These measures increase the institutions' market value of securities and add to their equity positions. We show that the extent of this recapitalization effect crucially depends on the securities' accounting and valuation methods, country-level regulation, and maturity structure. We argue that future research needs to consider these factors when quantifying banks' recapitalization effects and consequent changes in banks' lending decisions to the real sector.
Physical Description: 1 Online-Ressource (circa 22 Seiten); Illustrationen
ISBN: 9783957298102