1. Publications
  2. Journal of Monetary Economics, December 2020
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Lending Effects of the ECB’s Asset Purchases

Between 2010 and 2012, the European Central Bank absorbed €218 billion worth of government securities from five EMU countries under the Securities Markets Programme (SMP). Detailed security holdings data at the bank level affirms an effective lending stimulus due to the SMP. Exposed banks contract household lending, but increase commercial lending substantially. Holding non-SMP securities from stressed EMU countries amplifies the commercial lending response. The SMP also improved liquidity buffers and profitability without compromising credit quality.

15. December 2020

Authors Michael Koetter

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Keywords

bank lending Securities Markets Programme (SMP) unconventional monetary policy

JEL Classification

C30 C78 G21 G28 L51

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Professor Michael Koetter, PhD
Professor Michael Koetter, PhD
Vice President Department Head

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