Yb

Deposit market concentration and monetary transmission: evidence from the euro area

Retrieved on: 
Sunday, February 4, 2024

Abstract

Key Points: 
    • Abstract
      I study the transmission of monetary policy to deposit rates in the euro area with a
      focus on asymmetries and the role of banking sector concentration.
    • Moreover, the
      gap between deposit rates across euro area member states - despite being exposed to the same
      key ECB interest rates - has widened.
    • This begs the question whether deposit rates are more
      sluggish in response to both policy rate increases and cuts, and what factors might influence the
      transmission of monetary policy to deposit rates.
    • Whether banks are indeed able to adjust deposit rates asymmetrically to positive and
      negative changes in policy rates could thus well depend on how much market power they hold
      in the deposit market.
    • Arguing that market power increases in the degree of market concentration,
      I further consider whether more concentrated banking sectors set rates (more) asymmetrically.
    • The response of deposit rates in banking sectors with an average degree of concentration does
      not appear asymmetric.
    • The degree of market concentration is often pointed at, but recent evidence
      for the euro area is scarce.
    • In this paper, I provide empirical evidence on the asymmetric response of deposit rates to
      monetary policy, and relate this to the degree of concentration within a country?s banking sector.
    • Both papers
      provide empirical evidence based on US deposit markets showing that deposit rates respond
      more rigidly to upward changes in market rates than downward changes, especially so in more
      concentrated markets.
    • Recent research on euro area deposit markets,
      instead, has focused more on the transmission of negative policy rates (see e.g.
    • Whether banks are able to set deposit rates that materially differ from policy rates is affected

      ECB Working Paper Series No 2896

      4

      by market concentration: market power is assumed to increase in the degree of concentration in
      the banking sector.

    • Concentration thus appears to matter for how quickly ECB monetary policy has
      been transmitted to deposit rates across the euro area.
    • Banks thus have a motive to be
      rigid in adjusting deposit rates to a ?positive? monetary policy shock.
    • While customers are generally (and potentially rationally) inattentive, swift and substantial
      nominal deposit rate declines may trigger deposit outflows.
    • relative deposit rate = deposit rate - short term rate
      The inverse of the wedge, the relative deposit rate will allow us to see more clearly how
      the deposit rate evolves in comparison to the short-term rate.
    • This then translates to (more
      pronounced) effects on the transmission of policy to the deposit wedge, reinforcing the asymmetry discussed before.
    • More concentration would mean more rigid deposit rates (and thus an
      increase in the deposit wedge) in case of positive surprises, and more flexible deposit rates (and
      thus a decrease in the deposit wedge) in case of negative surprises (see also e.g.
    • I add an identical
      altered-linex adjustment cost for deposit rates, to capture the upward rigidity and downward
      flexibility of deposit rates as well.
    • As discussed
      previously, the deposit rate is particularly rigid in case of a positive shock, illustrating the dividend smoothing motive and bank market power.
    • Without the asymmetric adjustment cost,
      the response of the deposit rates to positive and negative changes in policy would have been
      symmetric.
    • This appears a reasonable assumption
      in general, as market concentration or market shares are slow-moving concepts.
    • 3

      Methods and data

      I study the dynamic response to an unexpected change in monetary policy on deposit rates
      in different countries in the euro area.

    • deposit rate - short-term rate), which for the sake of
      brevity I will refer to as the ?relative deposit rate?.
    • Positive IRFs for the relative deposit rate imply that
      the deposit rate has increased by more than the short-term rate, narrowing the wedge between
      the short-term rate and the deposit rate.
    • 0
      ?2

      ?2
      ?4
      ?6

      ?4
      4

      8

      12

      4

      Months

      8

      12

      Months

      Figure 9: NFC rate response - linear combination of ?0 and ?1

      Relative deposit rate at 1 month

      Relative deposit rate at 4 months

      0.0

      0
      ?1

      p.p.

    • 0
      0

      ?2
      ?1
      ?4
      4

      8

      12

      4

      8

      Months

      12

      Months

      Figure 12: NFC rate response - linear combination of ?0 and ?1

      Relative deposit rate at 1 month

      Relative deposit rate at 4 months
      2.0

      1.5

      p.p.

    • And, (2) how quickly
      households and NFCs learn about changes in monetary policy, via the deposit rate, may vary
      across the monetary union.
    • ?0 , ?1 )
      Figure A16: NFC overnight deposits, small member states

      Relative deposit rate (average)

      Relative deposit rate (interaction)

      2

      10
      5

      p.p.

    • ?0 , ?1 )
      Figure A19: NFC overnight deposits, four lags

      Relative deposit rate (average)

      Relative deposit rate (interaction)
      5

      0

      p.p.

    • ?0 , ?1 )
      Figure A28: NFC overnight deposits, small member states

      Relative deposit rate (average)

      Relative deposit rate (interaction)

      3

      5.0

      2

      2.5

      p.p.

    • ?0 , ?1 )
      Figure A31: NFC overnight deposits, four lags

      Relative deposit rate (average)

      Relative deposit rate (interaction)

      3
      2

      p.p.

OFS Innovations in Specialty Optical Fiber at SPIE Photonics West

Retrieved on: 
Wednesday, January 17, 2024

SAN FRANCISCO, Jan. 17, 2024 /PRNewswire/ -- OFS, a leading manufacturer of fiber optic products and solutions, will display its technical expertise and industry leadership by presenting seven highly anticipated educational sessions at the annual SPIE BiOS Expo and Photonics West Exhibition in San Francisco, California, from 27 January through 1 February 2024.

Key Points: 
  • "We're excited to showcase OFS' industry-leading photonics research at the premier optics and laser conference this year," said David DiGiovanni, Chief Technology Officer at OFS, and President of OFS Laboratories.
  • "With breakthroughs in fiber laser power scaling, and integrated fiber optic sensors, our technical presentations demonstrate our commitment to developing innovative fiber products.
  • OFS invites all conference attendees and media representatives to attend these presentations and engage with our experts to explore the latest advancements in photonics research.
  • For more information about OFS and its contributions to the field of photonics, please visit with OFS personnel, who will be available to discuss the research presented at the OFS booth #8324 at BiOS and #4505 at Photonics West or visit www.ofsoptics.com/photonics-west .

OFS Announces DirectLase™Premium Yb-doped Optical Fiber at Photonics West 2023

Retrieved on: 
Monday, January 23, 2023

SAN FRANCISCO, Jan. 23, 2023 /PRNewswire/ -- Photonics West 2023 -- OFS announced today its newest innovation, DirectLase Premium Yb-doped optical fiber for directed energy fiber-laser systems. OFS will feature DirectLase Premium at the annual Photonics West Exhibition to be held at the Moscone Convention Center in San Francisco, California January 28 through February 2, 2023. 

Key Points: 
  • SAN FRANCISCO, Jan. 23, 2023 /PRNewswire/ -- Photonics West 2023 -- OFS announced today its newest innovation, DirectLase Premium Yb-doped optical fiber for directed energy fiber-laser systems.
  • OFS will feature DirectLase Premium at the annual Photonics West Exhibition to be held at the Moscone Convention Center in San Francisco, California January 28 through February 2, 2023.
  • Building upon decades of innovation in Yb-doped optical fiber, the OFS DirectLase Yb-doped gain fibers were developed to provide high-reliability gain fibers for the directed energy market.
  • For more information about DirectLase Premium Yb-doped optical fiber Visit OFS at Photonics West, booth #4505 or https://www.ofsoptics.com/directlase .

Laser World of Photonics Names Edmund Optics® as 2022 Innovation Award Finalist for Stemmed Laser Mirrors

Retrieved on: 
Thursday, May 26, 2022

BARRINGTON, N.J., May 26, 2022 (GLOBE NEWSWIRE) -- Edmund Optics, a leading global manufacturer and supplier of optical components, was named as one of three finalists for the 2022 Innovation Award by Laser World of Photonics in the optics category for its TECHSPEC Stemmed Laser Mirrors .

Key Points: 
  • BARRINGTON, N.J., May 26, 2022 (GLOBE NEWSWIRE) -- Edmund Optics, a leading global manufacturer and supplier of optical components, was named as one of three finalists for the 2022 Innovation Award by Laser World of Photonics in the optics category for its TECHSPEC Stemmed Laser Mirrors .
  • This mounting technique decouples mounting stability from surface stress, giving Stemmed Laser Mirrors superior flatness profiles since little-to-no stress is applied to the mirrored surface.
  • As part of the Innovation Award Shortlist Live Webinar Series, Edmund Optics' Laser Optics Sales Specialist, Sara Castillo, will present the technology and advantages of the Laser Stemmed Mirrors on Tuesday, June 28, 2022, at 9 a.m.
  • To view the Laser Stemmed Mirrors, and many more exciting new products offered by Edmund Optics, visit the new products page at www.edmundoptics.com .

Breakthrough for efficient and high-speed spintronic devices

Retrieved on: 
Monday, April 25, 2022

A promising approach for speeding up data storage devices consists of switching the magnetization, or the electrons' spin, of magnetic materials with ultra-short femtosecond laser pulses.

Key Points: 
  • A promising approach for speeding up data storage devices consists of switching the magnetization, or the electrons' spin, of magnetic materials with ultra-short femtosecond laser pulses.
  • The team demonstrates, for the first time, a tabletop ultrafast soft X-ray microscope to spatio-temporally resolve the spin dynamics inside rare earth materials, which are promising for spintronic devices.
  • This new soft X-ray source based on a high-energy Ytterbium laser represents a critical advance for studying future energy-efficient and high-speed spintronic devices and could be used for many applications in physics, chemistry, and biology.
  • The X-ray source is very attractive for many studies on future spintronic devices composed of rare earth."

Stemmed Mirrors From Edmund Optics® Reduce Surface Stress and Deformation

Retrieved on: 
Tuesday, January 25, 2022

Stemmed mirrors feature a unique geometry that prevents the stress introduced from mounting any optic from deforming the reflective surface, which would cause wavefront errors and performance degradation.

Key Points: 
  • Stemmed mirrors feature a unique geometry that prevents the stress introduced from mounting any optic from deforming the reflective surface, which would cause wavefront errors and performance degradation.
  • Stemmed Mirrors were shown to maintain surface flatness better than conventional mirrors by a factor of two.
  • TECHSPEC Broadband Dielectric Stemmed Mirrors feature improved reflectivity and increase system performance by minimizing energy loss and scatter.
  • To view these, and many more exciting new products offered by Edmund Optics, visit the new products page at www.edmundoptics.com .

AdlOptica Objective Lenses Reduce Aberrations and Enable Processing of Optical Substrates at Multiple Focal Point Depths

Retrieved on: 
Tuesday, November 23, 2021

This product expansion includes objective lenses that minimize optical aberrations for improved focusing and multiple focal depths for advanced material processing.

Key Points: 
  • This product expansion includes objective lenses that minimize optical aberrations for improved focusing and multiple focal depths for advanced material processing.
  • AdlOptica aplanoXX Aplan Objectives are designed for use with ultrafast solid-state and fiber lasers and are optimized for 800nm (Ti:sapphire) and 1030nm (Tb:doped) wavelengths.
  • These objectives compensate for spherical aberration and coma when focusing light into glass, sapphire, silicon carbide, silicon, PMMA, and other transparent materials.
  • To view these, and many more exciting new products offered by Edmund Optics, visit the new products page at www.edmundoptics.com .

Inflection Resources Provides Update on Exploration Program in New South Wales - Commences Drilling Untested Priority Targets at Trangie

Retrieved on: 
Thursday, September 23, 2021

We are excited to continue our efforts by focusing on the highest priority targets with first pass and step-out drill holes.

Key Points: 
  • We are excited to continue our efforts by focusing on the highest priority targets with first pass and step-out drill holes.
  • In particular, a series of drill holes, recently cleared for access, will test new high priority areas at Trangie.
  • Finally, the discovery of highly anomalous Zirconium and REEs at Marra is encouraging and adds another dimension to our innovative exploration program.
  • Inflection has now completed 52 holes totalling 11,348 metres since the inception of the Northern New South Wales drill program.