Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273724 
Year of Publication: 
2023
Series/Report no.: 
Deutsche Bundesbank Discussion Paper No. 12/2023
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
We exploit variation in the share of seniors across European banking markets to construct an IV for banks' dependence on long-term deposit funding and find that greater long-term deposit funding reduces demand for long-term central bank funding via targeted longer-term refinancing operations (TLTRO). This effect is stronger when banks face less competition. Long-term central bank funding further motivates banks to reduce their dependence on debt issuance and increase their money markets borrowing. Our findings are consistent with the idea that banks' access to stable funding can crowd out their incentive to apply for (long-term) central bank funding.
Subjects: 
Monetary policy
bank funding
deposit financing
JEL: 
E50
G20
G28
ISBN: 
978-3-95729-943-7
Document Type: 
Working Paper

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