Corporates’ Dependence on Banks: The Impact of ECB Corporate Sector Purchases

45 Pages Posted: 4 Feb 2020

Date Written: January 16, 2020


This paper investigates whether ECB corporate sector purchases impact the funding structure of non-financial corporates. Regression models are estimated using a unique microdata panel, combining data on all Eurosystem corporate sector purchases and individual balance sheets of 672 non-financial corporations headquartered in the euro area with access to capital markets. The findings indicate that ECB purchases of corporate bonds reduce the dependence on bank financing of corporates whose debt is purchased. The effects vary according to corporates’ interest paid, financial expenses and price-to-book ratio. In addition, this paper shows that the relationship between central bank purchases and corporates’ dependence on bank financing is non-linear. The downward effect on bank dependence is largest for those corporates of which most debt is purchased under the CSPP, relative to their total stock of debt.

Keywords: non-financial corporates, bank dependence, ECB corporate sector purchases, monetary policy

JEL Classification: E44, E58, G10, G21

Suggested Citation

Bats, Joost, Corporates’ Dependence on Banks: The Impact of ECB Corporate Sector Purchases (January 16, 2020). De Nederlandsche Bank Working Paper No. 667, January 2020, Available at SSRN: or

Joost Bats (Contact Author)

De Nederlandsche Bank ( email )

PO Box 98
1000 AB Amsterdam
Amsterdam, 1000 AB

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