Economics, Econometrics and Finance
3 years ago

Negative interest rates boost lending by euro area banks, spurring economic growth.

RePEc: Research Papers in Economics
Implications of negative interest rates for the net interest margin and lending of euro area banks
Melanie Klein

Paper Summary

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The article explores how low and negative interest rates affect euro area banks' profits and lending. The researchers used data from banks to show that when interest rates are negative, banks make more money from loans. This allows them to lend more to businesses. This means that even when interest rates are low, banks can still help businesses grow by giving them loans.