A Note of Caution on Quantifying Banks' Recapitalization Effects

Unconventional monetary policy measures like asset purchase programs aim to reduce certain securities' yield and alter financial institutions' investment behavior. These measures increase the institutions' market value of securities and add to their equity positions. We show that the extent of this recapitalization effect crucially depends on the securities' accounting and valuation methods, country-level regulation, and maturity structure. We argue that future research needs to consider these factors when quantifying banks' recapitalization effects and consequent changes in banks' lending decisions to the real sector.

05. Februar 2021

Autoren Felix Noth Kirsten Schmidt Lena Tonzer

Ihr Kontakt

Für Wissenschaftler/innen

Juniorprofessorin Dr. Lena Tonzer
Juniorprofessorin Dr. Lena Tonzer
Forschungsgruppenleiterin

Für Rückfragen stehe ich Ihnen gerne zur Verfügung.

Anfrage per E-Mail

Für Journalistinnen/en

Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo