| dc.description.abstract | This paper contributes to the understanding of negative interest rates (NIRP) and their impact on banks. It specifically looks at bank stocks in eight different countries between 2006-2008, when all countries had positive rates, as well as between 2017-2019 when four of the countries had negative rates, and the other four remained positive, and examines their monthly average returns. Utilizing data from Bloomberg Terminal, and drawing upon past research, the results from the study revealed that bank stocks do not collapse under NIRP. They are able to remain fairly steady in terms of their volatility, and their reaction to the market remains relatively unchanged whether they are in negative or positive interest rate environments. This study discusses the potential reasonings and future implications of embracing a negative interest rate policy. | |
