Joonkyu Choi, Serguey Braguinsky, Yuheng Ding, Karam Jo, Seula KimWe provide evidence that mega firms have played an increasingly important role in shaping new technological trajectories in recent years. While the share of novel patents—defined as patents introducing new combinations of technological components— produced by mega firms declined until around 2000, it has rebounded sharply since then.
The Bank's Court of Directors acts as a unitary board, setting the organisation's strategy and budget and taking key decisions on resourcing and appointments. Required to meet a minimum seven times per year, it has five executive members from the Bank and up to nine non-executive members.
Do climate stress tests affect bank credit supply to brown firms? Using a difference-in-differences approach and detailed data on individual bank loans in the euro area, this paper provides novel evidence on the effects of the ECB’s 2022 climate risk stress test. Despite no capital implications or public disclosures, participating banks significantly reduced credit to greenhouse gas-intensive industries relative to nonparticipants. Among affected firms, smaller borrowers were more negatively impacted.
Do climate stress tests affect bank credit supply to brown firms? Using a difference-in-differences approach and detailed data on individual bank loans in the euro area, this paper provides novel evidence on the effects of the ECB’s 2022 climate risk stress test. Despite no capital implications or public disclosures, participating banks significantly reduced credit to greenhouse gas-intensive industries relative to nonparticipants. Among affected firms, smaller borrowers were more negatively impacted.
This box explores the implications of rising import penetration of Chinese products for the euro area labour market. As China advances into high value-added sectors, such as vehicles and specialised machinery, its exports increasingly challenge euro area firms across domestic and third-country markets. Panel regressions, following Autor et al. (2013), show that greater exposure per worker to imports from China is associated with a negative impact on the employment rate.
Consumer confidence plays an important role in determining economic activity. This box presents a consumer confidence indicator derived from the ECB’s Consumer Expectations Survey to explore its relation with household consumption. Analysis reveals that confidence levels vary by income quintile, with high-income households demonstrating greater sensitivity to economic news, in line with their greater financial literacy and higher share of discretionary spending.
The European Union (EU) economy depends heavily on bank funding. For this reason, strengthening EU equity markets as an alternative funding source has been a policy priority under the Capital Markets Union (CMU) agenda, and more recently a key feature of the Savings and Investment Union (SIU). EU listed equity markets are smaller and structurally different from those in the United States (US), with differing market capitalisations of listed firms and differences in the number of companies listed, stemming from lower initial public offering (IPO) activity in Europe.
Sharjil Haque, Young Soo Jang, and Jessie Jiaxu WangThis paper examines how banks’ financing of nonbank lenders affects monetary policy transmission. Using supervisory bank loan-level data and deal-level private credit data, we document an intermediation chain: Banks lend to Business Development Companies (BDCs)—large private credit providers—which then lend to firms.
Edward P. Herbst and Benjamin K. JohannsenThis comment discusses Kolesár and Plagborg-Møller's (2025) finding that the standard linear local projection (LP) estimator recovers the average marginal effect (AME) even in nonlinear settings. We apply and discuss a subset their results using a simple nonlinear time series model, emphasizing the role of the weighting function and the impact of nonlinearities on small-sample properties.
John Coglianese, Seth Murray, and Christopher J. NekardaThe official labor force statistics often exhibit discontinuities in January, when updated population estimates are incorporated into the Current Population Survey (CPS) for the current year but are not revised backward through history.
