working paper series carlo altavilla miguel boucinha money markets and bank lending lorenzo burlon mariassunta giannetti evidence from the adoption of tiering julian schumacher no 2649 february 2022 disclaimer this ...
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...Working paper series carlo altavilla miguel boucinha money markets and bank lending lorenzo burlon mariassunta giannetti evidence from the adoption of tiering julian schumacher no february disclaimer this should not be reported as representing views european central ecb expressed are those authors do necessarily reflect abstract exploiting introduction s system for remunerating excess reserve holdings we document importance access to market show that two tier produced positive wealth effects banks with reserves encouraged a reallocation liquidity toward unused exemptions ultimately decreased fragmentation in enhanced monetary policy transmission mechanism increased by allowances incentivizes them extend more credit than other including whose valuations increase most jel codes g e keywords negative interest rate non technical summary number theories emphasize smooth functioning however shocks affecting may also affect demand making it hard identify actual empirical studies especially du...