They identify banks’ exposure to negative rates by their exposure to excess liquidity conditional on each banks’ business model and find that banks have reacted to negative interest rates by granting more loans, reducing their reliance on wholesale funding and by acquiring non-domestic government bonds. Interestingly, banks classified as investment banks, i.e.
Home sales have been rising in recent years, the percentage of homes that are vacant has been falling, and inventories of both new and existing homes for sale have drifted back down to relatively low levels.