Can Central Banks Boost Corporate Investment: Evidence from the ECB Liquidity Injections

Stine Louise  Daetz; Marti G.  Subrahmanyam; Dragon Yongjun Tang; Sarah Qian Wang

Can Central Banks Boost Corporate Investment: Evidence from the ECB Liquidity Injections

Stine Louise Daetz, Marti G. Subrahmanyam, Dragon Yongjun Tang, Sarah Qian Wang

Publikation: Working paper › Forskning

Abstract

Kan virksomheders investeringer fremmes ved hjælp af monetære stimuli? Vi adresserer dette spørgsmål ved at undersøge ECB's Longer-Term Refinancing Operations (LTRO'erne) fra 2011/2012, der indebar billig finansiering for banker i eurozonen. Vi finder at virksomheder i eurozonen i forhold til deres modparter udenfor eurozonen investerede mere efter LTRO'erne. LTROfinansieringen blev dog i høj grad brugt af risikobetonede banker, og deres optag af LTROmidler er negativt associeret med deres kunders' investeringer. Det vil sige, at virksomheder reducerede deres investeringer såfremt deres bank benyttede den billige LTRO-finansiering fra ECB. Vores resultater tydeliggør vanskelighederne ved at fremme investeringer gennem tilførsel af likviditet til banksystemet, især med svækkede bank balancer.

Originalsprog	Engelsk
Udgivelsessted	København
Udgiver	Danmarks Nationalbank
Antal sider	57
Status	Udgivet - 18 maj 2018
Udgivet eksternt	Ja

Navn	Danmarks Nationalbank. Working Papers
Nummer	126
ISSN	1602-1193

Emneord

Unconventional monetary policy
ECB interventions
Corporate policies
Real economy

Adgang til dokumentet

http://www.nationalbanken.dk/da/publikationer/Documents/2018/05/Working%20Paper%20126_2018.pdfLicens: Ikke-specificeret

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Citationsformater

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abstract = "Can monetary stimulus boost corporate investment? We answer this question by studying ECB's 2011-2012 Longer-Term Refinancing Operations (LTROs), which provided cheap funding to Eurozone banks. We find that, relative to their non-Eurozone counterparts, Eurozone firms invested more after the LTROs. However, riskier banks took more funds from the LTROs, and their uptake is negatively associated with their clients' investment. In other words, firms reducedinvestment when their banks took cheap LTRO funds from the ECB. Overall, our results highlight the difficulty of boosting investment by injecting liquidity into the banking system, especially with impaired bank balance sheets.",

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