The State and the Capital: A study of monetary policy and its' effect on commercial bank profitability
This paper explores the role of the Swedish central bank in relation to the profitability of commercial banks. Utilizing local projection analysis, we examine the effect of policy rate and quantitative easing shocks from 2000 to 2023. Our study yields nuanced findings compared to the existing literature. In contrast to earlier studies, our findings indicate a negative effect of the policy rate on