Jobmarket Paper
Jobmarket Paper
The Real Effects of Funding for Lending: Evidence from the European Central Bank's Targeted Longer-Term Refinancing Operations
Abstract:
This paper investigates whether funding for lending programmes stimulate firm investment, using the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTROs). I construct a novel matched firm–bank dataset combining firm balance sheets, banking relationships, and supervisory bank data. Using two-way fixed effects regressions and a continuous-treatment difference-in-differences design exploiting the 2020 recalibration of TLTRO III, I find that banks with greater TLTRO take-up expand lending, while firms linked to these banks increase borrowing and accumulate deposits. However, I find no evidence of higher firm investment, suggesting that funding for lending programmes may stimulate credit without necessarily generating real economic effects.
A Two-Tier System for the Remuneration of Banks' Excess Reserves
Latest version
Abstract
The Effects of Quantitative Easing and Tightening on Bank Balance Sheets
Abstract