- Author
- Stadtmann Georg (Europa-Universität Viadrina, Germany), Moritz Karl-Heinz (Europa-Universität Viadrina, Germany), Berthold Kristin (Europa-Universität Viadrina, Germany), Stadtmann Tobias (Robert Schuman Berufskolleg, Germany)
- Title
- Passing on negative interest rates
- Source
- International Journal of Management and Economics, 2020, vol. 56, nr 4, s. 283-290, tab., rys., bibliogr. 11 poz.
Zeszyty Naukowe / Szkoła Główna Handlowa. Kolegium Gospodarki Światowej - Keyword
- Bankowość, Stopa procentowa, Teoria gier
Banking, Interest rate, Game theory - Note
- JEL Classification : G21, E43, E52
summ. - Abstract
- Since the ECB has lowered the interest rate on deposits into negative territory, more and more commercial banks are also passing on this negative interest rate to their customers. The main aim of this paper is to answer the question under which conditions the commercial banking sector will be more or less reluctant to pass the negative deposit rate on to its private customers. We first clarify the circumstances under which demand deposits and excess liquidity arise, and what role quantitative easing plays in this context. Within a game-theoretical framework, it is derived that the pressure to pass on the negative interest rate is particularly high if there are no switching costs, and the banking market follows a Bertrand competition.(original abstract)
- Accessibility
- The Library of Warsaw School of Economics
- Full text
- Show
- Bibliography
-
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- Cited by
- ISSN
- 2299-9701
- Language
- eng
- URI / DOI
- https://doi.org/10.2478/ijme-2020-0022
