13.01.2020 New publication in Finance Research Letters

The paper “Estimating the monetary policy interest-rate-to-performance sensitivity of the European banking sector at the zero lower bound” by Prof. Bernd Hayo, Dr. Kai Henseler and Prof. Marc Steffen Rapp has been accepted for publication in Finance Research Letters. Using an event-study design, the paper studies monetary policy interest-rate-to-performance sensitivity of the European banking sector. The authors find shadow prime rate changes positively affect changes in the EURO-STOXX-Banks Future. These findings add to the recent evidence documenting that banks benefit from increasing interest rate levels in a low-interest-rate environment.

The working paper is available here.