Universität zu Köln

Kurtzman, Robert ORCID: 0000-0001-9709-4194, Luck, Stephan and Zimmermann, Tom (2022). Did QE lead banks to relax their lending standards? Evidence from the Federal Reserve's LSAPs. J. Bank Financ., 138. AMSTERDAM: ELSEVIER. ISSN 1872-6372

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Abstract

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. (c) 2018 Published by Elsevier B.V.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Kurtzman, Robert UNSPECIFIED orcid.org/0000-0001-9709-4194 UNSPECIFIED Luck, Stephan UNSPECIFIED UNSPECIFIED UNSPECIFIED Zimmermann, Tom UNSPECIFIED UNSPECIFIED UNSPECIFIED
URN:	urn:nbn:de:hbz:38-674024
DOI:	10.1016/j.jbankfin.2018.08.009
Journal or Publication Title:	J. Bank Financ.
Volume:	138
Date:	2022
Publisher:	ELSEVIER
Place of Publication:	AMSTERDAM
ISSN:	1872-6372
Language:	English
Faculty:	Unspecified
Divisions:	Unspecified
Subjects:	no entry
Uncontrolled Keywords:	Keywords Language MONETARY-POLICY; RISK-TAKING; COSTS Multiple languages Business, Finance; Economics Multiple languages
URI:	http://kups.ub.uni-koeln.de/id/eprint/67402