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dc.contributor.authorLópez Penabad, María Celia
dc.contributor.authorIglesias Casal, Ana
dc.contributor.authorSilva Neto, José Fernando
dc.date.accessioned2022-03-23T07:41:47Z
dc.date.available2022-03-23T07:41:47Z
dc.date.issued2022
dc.identifier.citationResearch in International Business and Finance 60 (2022) 101597. https://doi.org/10.1016/j.ribaf.2021.101597
dc.identifier.urihttp://hdl.handle.net/10347/27702
dc.description.abstractThis paper analyses the effect of a negative interest rate policy (NIRP) on profitability and risk taking in the European banking sector and whether this effect is differentiated according to the bank business model. Using a dataset of 2596 banks from 29 European countries over the period 2011–2019 and applying a static modelling approach, we conclude that the implementation of NIRPs lowers the net interest margin and the return on assets of a representative bank by 14.5 basis points and 18.5 basis points, respectively. We also conclude that a decrease in the short-term interest rate lowers the net interest margin when interest rates are already negative. In an environment of negative interest rates, we do not find that European banks take on more risk and conclude that the effects of the implementation of NIRPs influence banks’ profitability and risk taking differently, depending on the business model adopted
dc.description.sponsorshipThis study was carried out with financial support by Xunta de Galicia- Consolidación 2020 CRC GI-1866-, the Applies Financial Evaluation Research Group
dc.language.isoeng
dc.publisherElsevier
dc.rights© 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
dc.rights.urihttp://creativecommons.org/licenses/by/4.0/
dc.subjectNegative interest rates
dc.subjectMonetary policy
dc.subjectBank profitability
dc.subjectBank risk taking
dc.subjectEuropean banks
dc.titleEffects of a negative interest rate policy in bank profitability and risk taking: evidence from European banks
dc.typeinfo:eu-repo/semantics/article
dc.identifier.DOI10.1016/j.ribaf.2021.101597
dc.relation.publisherversionhttps://doi.org/10.1016/j.ribaf.2021.101597
dc.type.versioninfo:eu-repo/semantics/publishedVersion
dc.identifier.e-issn0275-5319
dc.rights.accessrightsinfo:eu-repo/semantics/openAccess
dc.contributor.affiliationUniversidade de Santiago de Compostela. Departamento de Economía Cuantitativa
dc.contributor.affiliationUniversidade de Santiago de Compostela. Departamento de Economía Financeira e Contabilidade
dc.description.peerreviewedSI


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© 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)
Except where otherwise noted, this item's license is described as  © 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)





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