TSI Concluding Conference – March 17-18, 2025, Berlin
TSI Concluding Conference 17-18 March 2025 in Berlin The TSI Concluding Conference , held in Berlin on March 17–18, 2025 , brought together key stakeholders from across the TSI…
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Overview
About the project Project Information: ProdTool – NPB 2.0: Micro-Data Analysis Tool 2.0 for comparative productivity studies at National Productivity Boards (Project acronym:…
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Overview
About the project Project Information: Microdata platform for productivity Participating Countries: Slovakia, Slovenia, France, Germany, Portugal, Latvia and Austria. Coordinated…
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4th TSI Workshop
4th TSI Workshop The 4th Technical Support Instrument (TSI) Workshop was a significant event in the TSI program series, focusing on enhancing collaboration among National…
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MDI Research Lab
Extended MDI Output The Extended MDI Output research projects encompass diverse areas, including Trade and Competitiveness, investigating productivity diffusion within Global…
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3rd TSI Workshop
Presentations 3rd TSI Workshop Vienna The 3rd TSI Workshop, spanning two days, featured presentations and discussions on various aspects of micro data analysis and the Micro Data…
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IWH-DPE in a Nutshell
IWH-DPE in a Nutshell The IWH Doctoral Programme in Economics (IWH-DPE) is the unit that organises the education of doctoral students at the IWH in close cooperation with partner…
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Do Euro Area Banks Adjust Their Foreign Real Estate Backed Lending in a Low Interest Rate Environment?
Kirsten Schmidt, Lena Tonzer
SUERF Policy Brief,
February
2025
Abstract
Banks have been operating in a low interest rate environment paired with booming housing markets. For the largest banks in the euro area and the period 2015-2022, we assess whether banks reallocate their foreign loan portfolio backed by real estate as a response to differences in local lending spreads across the home and destination country and conditional on reduced information frictions due to borrowing-country exposures. The main result is that the relative share of foreign real estate backed lending increases in case of return opportunities, and this sensitivity depends on local exposures towards the borrowing country. The result is driven by subsamples for which neither the home nor the borrowing country have implemented macroprudential regulation targeting real estate lending, or for which there is a misalignment in macroprudential policies. Nevertheless, we find limited evidence that the riskiness of real estate backed loans goes up during our sample period, and we discuss potential reasons for this result including the possibility of hidden losses.
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Banks and the State-Dependent Effects of Monetary Policy
Martin S. Eichenbaum, Federico Puglisi, Sergio Rebelo, Mathias Trabandt
NBER Working Papers,
No. 33523,
2025
Abstract
We show that the response of banks’ net interest margin (NIM) to monetary policy shocks is state dependent. Following a period of low (high) Federal Funds rates, a contractionary monetary policy shock leads to an increase (decrease) in NIM. Aggregate economic activity exhibits a similar state-dependent pattern. To explain these dynamics, we develop a banking model in which social interactions influence households’ attentiveness to deposit interest rates. We embed that framework within a nonlinear heterogeneous-agent NK model. The estimated model accounts well quantitatively for our key empirical findings.
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Organisation of Research
Tasks of the IWH Guided by its mission statement , the IWH places the understanding of the determinants of long term growth processes at the centre of the research agenda. Long…
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