The Overview of ECB's and NBS' COVID-19 Containment Measures

Lazić, Milena and Antonijević, Marija (2021) The Overview of ECB's and NBS' COVID-19 Containment Measures. In: Makroekonomska stabilnost i unapređenje konkurentnosti zemalja Zapadnog Balkana. Institut ekonomskih nauka, Beograd, pp. 146-166. ISBN 978-86-89465-65-5

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Abstract

The COVID-19 influenced crisis represents an unprecedented event that
has to some extent affected all segments of the economy of countries
worldwide. The outburst of the contagious coronavirus and its adverse
effects did not bypass the banking sector, which has consequently faced
numerous challenges. Although the banking sector usually played a
central role in periods of global instability, primarily as a vital part of the
problem, during the ongoing pandemic, it has been perceived as a part of
the solution. To strengthen the liquidity of national banking systems and
ensure the smooth transmission of monetary policy measures, central
banks have resorted to a wide range of conventional and unconventional
measures and activities. Given the context, the chapter aims to present
and analyze the impact of measures ECB and NBS have undertaken to
mitigate the adverse effects of the crisis triggered by the outburst of the
contagious coronavirus. Research results indicate that ECB primarily
resorted to injecting additional liquidity through the temporary asset
purchase program (PEPP) worth 1,850 billion EUR and lowering key
interest rates at historically low levels to encourage lending and reduce
borrowing costs. Analogously, NBS responded to the crisis along with the
first measures of the Government of the Republic of Serbia by reducing key
policy rate and providing additional domestic and FX liquidity to the
banking sector. By providing deeper insights into the key activities ECB and
NBS have undertaken to mitigate the COVID-19 crisis adverse effects, the chapter contributes to the growing body of literature in the field of central
banking and monetary policy.

Item Type:	Book Section
Additional Information:	COBISS.ID=53199881
Uncontrolled Keywords:	banking sector, COVID-19, pandemic emergency purchase programme, European Central Bank, National Bank of Serbia
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	09 Jan 2022 22:11
Last Modified:	09 Jan 2022 22:11
URI:	http://35.240.28.64/id/eprint/1710
Author Links:	[error in script] No links available.

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