Did QE lead banks to relax their lending standards? Evidence from the Federal Reserve’s LSAPs
| Autor: | Tom Zimmermann, Stephan Luck, Robert Kurtzman |
|---|---|
| Rok vydání: | 2022 |
| Předmět: |
Finance
Economics and Econometrics 050208 finance business.industry education 05 social sciences Loan officer Financial system Loan Quantitative easing 0502 economics and business Survey data collection Risk characteristics Business Asset (economics) 050207 economics health care economics and organizations |
| Zdroj: | Journal of Banking & Finance. 138:105403 |
| ISSN: | 0378-4266 |
| Popis: | Using confidential loan officer survey data on lending standards and internal risk ratings on loans, we document an effect of large-scale asset purchase programs (LSAPs) on lending standards and risk-taking. We exploit cross-sectional variation in banks’ holdings of mortgage-backed securities to show that the first and third round of quantitative easing (QE1 and QE3) significantly lowered lending standards and increased loan risk characteristics. The magnitude of the effects is about the same in QE1 and QE3, and is comparable to the effect of a one percentage point decrease in the Fed funds target rate. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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