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Long-term deposit funding and demand for central bank funds: evidence from targeted longer-term refinancing operations

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Bibliographic Details
Authors and Corporations: Fudulache, Adina-Elena (Author), Götz, Martin (Author)
Other Authors: Götz, Martin 1980- [Author]
Edition: March 7, 2023
Type of Resource: E-Book
Language: English
published:
Frankfurt am Main Deutsche Bundesbank [2023]
Series: Deutsche Bundesbank: Discussion paper ; no 2023, 12
Subjects:
Monetary policy
bank funding
deposit financing
Graue Literatur
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
ISBN: 9783957299437
Description
Summary: We exploit variation in the share of seniors across European banking markets to construct an IV for banks’ dependence on long-term deposit funding and find that greater long-term deposit funding reduces demand for long-term central bank funding via targeted longer-term refinancing operations (TLTRO). This effect is stronger when banks face less competition. Long-term central bank funding further motivates banks to reduce their dependence on debt issuance and increase their money markets borrowing. Our findings are consistent with the idea that banks’ access to stable funding can crowd out their incentive to apply for (long-term) central bank funding.
Physical Description: 1 Online-Ressource (circa 59 Seiten); Illustrationen
ISBN: 9783957299437