Euro area banks' asset‐liability dependency and unconventional monetary policy over the years 2013–2021: Does size matter?

Focusing on a sample of euro area commercial banks, we investigate the evolution of the asset‐liability dependency over the years 2013–2021, characterized by the introduction of monetary, supervisory and institutional policy measures that shaped a business environment never experienced before. We find that large banks show a stronger asset‐liability dependency than small banks, and that the linkages between the two sides of the balance sheet experience a general upward trend over time for both groups of intermediaries. We report evidence of the presence of two transmission channels of the unconventional monetary policy, namely, the direct pass‐through and the portfolio rebalancing.

• Publication year

  2024

• Venue

  European Financial Management

• Publication date

  2024-05-04

• Fields of study

  Not labeled

• Identifiers
  DOI 10.1111/eufm.12493
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

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