QE and negative deposit rates have increased lending – ECB
Sub-zero deposit rate has created small boost, but only 10% of banks report higher lending volumes due to negative rates
Unconventional monetary policy measures implemented by the European Central Bank to support inflation and asset prices have allowed banks to increase their lending volumes and improve their liquidity positions, the central bank says in its third-quarter bank lending survey.
The ECB concludes that its “negative deposit facility rate, while having an adverse impact on banks’ net interest income, is assessed by banks to have had a positive impact on their lending volumes”.
The survey, questioning
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