The Eurosystem's Standing Facilities in a General Equilibrium Model of the European Interbank Market

29 Pages Posted: 8 Jun 2016

Date Written: 2002

Abstract

We analyse the European interbank market in a general equilibrium model. Several institutional aspects of the market are taken into consideration, especially the Eurosystem?s two standing facilities, reserve requirements of banks and the fact that borrowing from the Eurosystem has to be secured. We show that some characteristics of the interbank market which have been ignored in the theoretical literature on the interbank market until now can have a significant impact on the banks? recourse to the standing facilities.

Wir analysieren den europäischen Interbankenmarkt im Rahmen eines allgemeinen Gleichgewichtmodells. Es werden verschiedene institutionelle Aspekte des Interbankenmarktes berücksichtigt, insbesondere die zwei ständigen Fazilitäten des Eurosystems, die Reserveverpflichtungen der Banken und die Tatsache, daß Kredite des Eurosystems besichert werden müssen. Wir zeigen, daß einige bisher in der theoretischen Literatur unberücksichtigt gebliebenen Eigenschaften des Interbankenmarktes einen Einfluß auf die Inanspruchnahme der Fazilitäten durch die Banken haben.

Suggested Citation

Tapking, Jens, The Eurosystem's Standing Facilities in a General Equilibrium Model of the European Interbank Market (2002). Bundesbank Series 1 Discussion Paper No. 2002,20, Available at SSRN: https://ssrn.com/abstract=2785156 or http://dx.doi.org/10.2139/ssrn.2785156

Jens Tapking (Contact Author)

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany

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