01914cas a2200277 a 4500 AALejournalIMF019112 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498300858 1018-5941 BD-DhAAL BD-DhAAL Bottero, Margherita. Negative Monetary Policy Rates and Portfolio Rebalancing : Evidence from Credit Register Data / Margherita Bottero, Camelia Minoiu, Jose-Luis Peydro, Andrea Polo. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (59 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We study negative interest rate policy (NIRP) exploiting ECB's NIRP introduction and administrative data from Italy, severely hit by the Eurozone crisis. NIRP has expansionary effects on credit supply-- -and hence the real economy---through a portfolio rebalancing channel. NIRP affects banks with higher ex-ante net short-term interbank positions or, more broadly, more liquid balance-sheets, not with higher retail deposits. NIRP-affected banks rebalance their portfolios from liquid assets to credit-especially to riskier and smaller firms-and cut loan rates, inducing sizable real effects. By shifting the entire yield curve downwards, NIRP differs from rate cuts just above the ZLB. Mode of access: Internet Minoiu, Camelia. Peydro, Jose-Luis. Polo, Andrea. IMF Working Papers; Working Paper ; No. 2019/044 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/044/001.2019.issue-044-en.xml IMF e-Library