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    Euro-area monetary policy, bank resilience and bank competition.

    Mamatzakis, Emmanuel (2022) Euro-area monetary policy, bank resilience and bank competition. Working Paper. Birkbeck, University of London, London, UK. (Unpublished)

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    Abstract

    We study the impact of ECB’s monetary policy (UMPs) on bank resilience and competition. Our sample includes all euro-area member states and employs ECB monetary policy tools both in terms of conventional and unconventional monetary policy, though the focus is on unconventional policy. We also employ bank-specific data like Z-score and Boone indicator. Our identification includes a plethora of panel regression analysis. The general specification opts for maximum likelihood estimation while we provide robustness analysis. We also control for endogeneity issues, using 2SLS estimations. The results suggest that UMP enhances bank soundness overall for the euro-area, though there is variability across countries, and countries in the periphery. It appears that German banks benefit the most from UMPs in terms of improving their financial stability. The results unveil the necessity to separately examine Germany and different groups of member countries so that the variability in the impact of UMPs can be observable. Policy recommendations include the warning of potential moral hazard problems and the role of national regulators in supporting ECB’s monetary policy decisions, especially in terms of dissimilarities between countries.

    Metadata

    Item Type: Monograph (Working Paper)
    School: Birkbeck Faculties and Schools > Faculty of Business and Law > Birkbeck Business School
    Research Centres and Institutes: Accounting and Finance Research Centre
    Depositing User: Emmanuel Mamatzakis
    Date Deposited: 18 Jul 2022 06:23
    Last Modified: 02 Aug 2023 18:17
    URI: https://eprints.bbk.ac.uk/id/eprint/48448

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