Аннотации:
The Negative Interest Rate Policy (NIRP) introduction was dictated with an
expansionary motive of the central banks. Unconventional monetary policy is still not fully
analyzed, and there are no signs that in the future policy rates might become positive. This
essay investigates the impact of NIRP on bank profitability, Return on Assets (ROA). The
difference-in-difference estimation method showed a small and insignificant decrease of
ROA of banks in those countries where NIRP was conducted. Two effects contribute to this
result. First, net interest-related income dropped for the treatment group banks. Secondly,
banks offset a reduction of interest-related profits by an increase in non-interest income,
which includes commissions and fees.