Interest on Excess Reserves and U.S Commercial Bank Lending

Posted: 2 Dec 2019 Last revised: 16 Sep 2020

See all articles by Marcelo Rezende

Marcelo Rezende

Board of Governors of the Federal Reserve System

Judit Temesvary

Board of Governors of the Federal Reserve System

Rebecca Zarutskie

Federal Reserve Board

Date Written: 2019-10-18

Abstract

In this note, we empirically assess whether changes in the interest on excess reserves (IOER) rate and changes in the spread between the IOER rate and the effective federal funds rate (EFFR) have affected banks' reserve holdings and lending, controlling for changes in the stance of monetary policy and other macroeconomic conditions.

Suggested Citation

Rezende, Marcelo and Temesvary, Judit and Zarutskie, Rebecca, Interest on Excess Reserves and U.S Commercial Bank Lending (2019-10-18). FEDS Notes No. 2019-10-18, Available at SSRN: https://ssrn.com/abstract=3475816 or http://dx.doi.org/10.17016/2380-7172.2453

Marcelo Rezende (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Judit Temesvary

Board of Governors of the Federal Reserve System ( email )

1801 K Street
Washington, DC 20006
United States
202-452-3759 (Phone)

Rebecca Zarutskie

Federal Reserve Board ( email )

20th Street and C Streets NW
Mailstop 155-B
Washington, DC 20551
United States
202-452-5292 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
12
Abstract Views
108
PlumX Metrics