---
title: Banking-System Heterogeneity and Monetary Policy Transmission in the Euro Area: High-Frequency Shocks, Local Projections, and Regime Dependence
url: https://www.ml-quant.com/papers/ssrn/7519040/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 7519040
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7519040
featured: 2026-09-25
citations: unknown
topic: Macro-Finance & Rates
---


# Banking-System Heterogeneity and Monetary Policy Transmission in the Euro Area: High-Frequency Shocks, Local Projections, and Regime Dependence

A 100-basis-point contractionary monetary shock lowers inflation and sales across 20 euro-area economies, with transmission strength varying by bank asset-risk exposure and assets-to-GDP ratio rather than a simple weak-strong taxonomy.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7519040
- Identifier: SSRN 7519040
- Released: 2026-09-24
- First featured: Quant Letter No. 132 (2026-09-25): https://www.ml-quant.com/issues/2026-09-25/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Macro-Finance & Rates
- Authors: Shi Hongyan

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