ECB corporate QE also transmitted through bank lending – ECB research
Spillover effect independent from banks’ balance sheet quality
The corporate bond purchases carried out by the European Central Bank have been complemented in improving companies’ financing conditions by bank lending.
In ECB corporate QE and the loan supply to bank-dependent firms, Frank Betz and Roberto De Santis analyse the transmission mechanism of this part of the ECB’s asset purchase programme.
“We find clear evidence that the CSPP [corporate sector purchase programme] is transmitted also through the bank lending channel,” say Betz and De Santis.
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