Interest on Excess Reserves and U.S Commercial Bank Lending
Posted: 2 Dec 2019 Last revised: 16 Sep 2020
Date Written: 2019-10-18
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.
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