Lenders asymmetric reaction to the ECB non-standard policies in the syndicated loan market
Matthieu Picault  1, *@  , Aurore Burietz  2@  
1 : IESEG - School of Management  (IESEG)  -  Site web
3 rue de la Digue, 59000 Lille -  France
2 : IESEG School of Management
Université Catholique de Lille
* : Auteur correspondant

We investigate the effectiveness of the bank lending channel, i.e. whether and how the accommodative monetary policy of the European Central Bank (ECB) mitigated the disruption in syndicated bank lending from 2008 to 2014. We show that both standard and non-standard measures of the ECB's accommodating monetary policy alleviated banks' funding constraints to support their lending activities in the syndicated loan market. However, we highlight a cross-sectional asymmetry in banks' responses depending on the financial indicator chosen. The supply of loans by banks with a low Tier 1 ratio or by small banks is supported by non-standard policies while these policies are not significant for lowly capitalised financial institutions.

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