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Monetary Policy Transmission: Banks, NonBanks, Credit and Prudential Policies


Registration deadline: 8 March 2020

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  • General description

    The course focuses on the interplay between monetary policy and developments in credit dynamics and intermediaries (banks and nonbanks) from both a microeconomic and a macroeconomic perspective. In particular, it analyses the impact of monetary policy on financial markets segments, the bank lending channel – with a focus on loans, lending rates and funding conditions – and more broadly the transmission of monetary policy via banks, including the interaction with microprudential and macroprudential policies.

    We also analyze substitution across other intermediaries such as investment funds, fintech, shadow banks, and security issuing. We explain among other topics: how to analyze monetary policy (shocks, surprises, policies); negative monetary policy rates; QE and other non-conventional policies; bank credit supply; nonbanks, including shadow banks and fintech; interaction between monetary policy and prudential policies. We use both macroeconometric techniques and also microeconometric techniques. Finally, we will analyze some international spillovers of monetary policies.

  • Topics covered

    • Macro and micro identification
    • The impact of monetary policy actions on financial markets
    • The transmission channels of both standard and non-standard monetary policy to lending conditions
    • Real effects of policy measures
    • Quantitative easing
    • Negative rates
    • Tiering
    • Nonbank credit intermediaries, fintech, shadow banks
    • Market finance substitution
    • Interactions of monetary with prudential policies
    • Anacredit European credit register
    • Euro Area supervision and monetary policy interactions
    • International spillovers of monetary policies

  • Meet the instructors

    Carlo Altavilla is Head of Bank Lending Conditions Section in the Directorate General Monetary Policy of the European Central Bank (ECB). He holds a Ph.D. in Economics from the Catholic University of Leuven. In his role, Carlo oversees the assessment of bank liquidity and funding conditions across the Euro area, the assessment of credit constraints, the functioning of the bank lending channel, and the calibration of standard and non-standard measures working through the banking system. He also chairs the taskforce on banking analysis for monetary policy of the Monetary Policy Committee of the European System of Central Banks. Before joining the ECB, he has taught econometrics and economic policy at the University of Naples and Université libre de Bruxelles and he has been a visiting scholar and professor at Columbia University and University College London, respectively. His research has appeared in several journals including the Journal of Money Credit and Banking, Economic Policy, and the Journal of Monetary Economics..

    José-Luis Peydró is Full Professor of Finance at Imperial College London and ICREA Professor of Economics at UPF, Barcelona GSE and CREI, and CEPR Research Fellow. His research on Monetary Policy, Banking, Prudential Policies and Systemic Risk has been published in the top journals in Economics and Finance such as Journal of Financial Economics, Review of Financial Studies, Journal of Finance, Journal of Monetary Economics, Journal of International Economics, Journal of Political Economy, American Economic Review and Econometrica. José-Luis is currently a Duisenberg Fellow at the European Central Bank, advisor at Bank of Spain and Research Professor at Bundesbank. He currently works on issues on the rise of shadow banks and fintech, and how this depends on monetary and prudential policies. José-Luis holds a PhD in Finance from INSEAD and a Master in Economics from CEMFI. He has taught in-company executive education at the European Central Bank, Central Bank of Portugal, Central Bank of Chile and the Bundesbank.

  • Prerequisites

    A Master’s Degree is required to attend the course.

    Participants are recommended to have at least an intermediate knowledge of the topics discussed in the course.

  • Fees

    1750€ – Public Authorities (e.g. National Competent Authorities, Central Banks and European Institutions).

    1900€ – Private Sector.

    950€ – Academics (Full-time Professors, full-time PhD Students and full-time Research Associates). Please submit a certificate attesting your status of Professor, PhD Student or Research Associate to fbf@eui.eu before registering. FBF secretariat will provide you with a code to register. *Seats for academics are limited and assigned by the FBF secretariat on a case-by-case basis.

    The course fee covers coffee and lunch breaks. Travel and hotel costs are not included.

    Please note that the payment must be settled two weeks before the start of the course.


    • In case a course is cancelled, registered participants will receive the full refund.
    • In case a course is moved to another date, registered participants may request a voucher to attend another FBF course.
    • Registered participants who have not yet paid the registration fee can cancel their participation until one month before the start of the course.
    • The registration fee is non-refundable, however it will be possible to transfer registration to another person or request a voucher for another FBF course up to 20 days before the start date of the course.

    For more details, please contact fbf@eui.eu
  • Follow-up seminar

    The course will be followed by a seminar by Massimo Rostagno, Director General at the Directorate General for Monetary Policy at the ECB.

    The seminar is open to the public. Participation is optional for course attendees.


    A tale of two decades:
    the ECB’s monetary policy at 20

    Date: 18 March 2020
    Time: 14:00-16:00
    Venue: EUI, Department of Economics – Villa La Fonte
    Speaker: Massimo Rostagno, Director General at the Directorate General for Monetary Policy at the European Central Bank.


    The 20th anniversary of Economic and Monetary Union (EMU) offers an opportunity to look back on the ECB’s record in these two decades that have radically changed the conduct of monetary policy, broadening the scope of its original mandate of price stability, becoming an anchor for the financial stability of the euro area. But for the latter, the completion of the Banking Union is also important and, therefore, it is also a good moment to reflect on its shorter history and its way forward.

    In the first part, Massimo Rostagno (Director General at the Directorate General for Monetary Policy at the ECB) will evaluate the way the ECB has defined, interpreted and applied its monetary policy mandate – its strategy – from its inception, the years of the financial and euro crises, to these last years of recovery and new challenges.

    In the second part, Luís Garicano (Professor at IE Business School and Member of the European Parliament) will provide an assessment of the current situation of the Banking Union and put forward two proposals to take it to its completion.

    Both presentations will be followed by comments and discussion led by experts including José Luís Peydro (Imperial College London, Universitat Pompeu Fabra, CREI and Barcelona GSE), Elena Carletti (Bocconi University and Florence School of Banking and Finance), Ramon Marimon (Pierre Werner Chair, EUI), Jean Pisani-Ferry (Tommaso Padoa Schioppa Chair, EUI) and PhD researchers and post-doctoral fellows of the Department of Economics and the Max Weber Programme of the European University Institute.

    Register to the lecture here

  • Practical information

    A certificate of attendance will be provided to all participants after the course.


    Please notice that the course dinner, and most of the social activities, will take place downtown.

    Recommended hotels in downtown Florence:

    Recommended hotels nearby the EUI:

    Suggested restaurants in Florence city centre


    On arrival, participants will be provided with temporary wi-fi access for the whole duration of the course.

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    General information on local transport

    From Florence airport:

    Florence airport is located 8 km from the city centre, approximately 30 minutes by taxi or bus. Taxis can be found outside the arrivals terminal; no reservation is needed. A taxi ride from the airport costs about €20 and takes approximately 25/30 minutes.

    A tramway (line T2) connects the airport to the city centre. Trains leave from the airport terminal and take 20 minutes to the main railway station. One-way tickets can be bought from vending machines for €1.50.

    The airport is also connected to the main railway station in Florence by a shuttle bus (‘Vola in bus’) that leaves every 30 minutes (on the hour and on the half-hour) and takes 25 minutes. Tickets are available on board for €6.00.

    From the central railway station:

    Take bus n. 7 at the bus stop Stazione Nazionale in the direction “Fiesole Piazza Mino”, get off at the stop ‘San Domenico 01’. For bus routes and timetables consult the official timetable.

    Bus tickets are sold outside the railway station, at ATAF ticket kiosks and vending machines, tobacconists (tabacchi), newspaper kiosks (edicole), and most cafès (bar). Bus tickets can be purchased also on board with a contactless credit card (Mastercard, Maestro, Visa and V PAY).

    Private car

    From the A1 Milano-Napoli (Autostrada del Sole), take the Firenze Sud exit and follow directions to the city centre/Stadio. Follow the directions to the stadium (Stadio), then for Fiesole. San Domenico is on the main road to Fiesole.

    The EUI has several free parking areas available all over the Campus.

  • Course material

    Reading list:

    • “Systemic Risk, Crises and Macroprudential Policy,” Xavier Freixas, Luc Laeven, and José-Luis Peydró, MIT Press, 2015.
    • “A Tale of two Decades: The ECB’s Monetary Policy at 20” Rostagno, Massimo; Altavilla, Carlo; Carboni, Giacomo; Lemke, Wolfgang; Motto, Roberto; Saint-Guilhem, Arthur and Yiangou, Jonathan, 2019, “, ECB WP.
    • “Measuring Euro Area Monetary Policy” Altavilla C., Brugnolini L., Gürkaynak R., Motto R., Ragusa G. (2019), Journal of Monetary Economics
    • “Monetary Policy and Bank Profitability in a low interest rate environment” Altavilla C., Boucinha M., J-L Peydro’ (2018), Economic Policy, Volume 33, Issue 96, Pages 531–586.
    • “Hazardous Times for Monetary Policy: What do 23 Million Loans Say About the Impact of Monetary Policy on Credit Risk-Taking?” Gabriel Jiménez, Steven Ongena, José-Luis Peydró and Jesús Saurina, Econometrica, 82 (2), 463-505, 2014