---
title: The Low Return Channel of Negative Interest Rates in Bank Lending
url: https://www.ml-quant.com/papers/ssrn/7489554/
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 7489554
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7489554
featured: 2026-09-25
citations: unknown
topic: Risk, Credit & Banking
---


# The Low Return Channel of Negative Interest Rates in Bank Lending

Japan's 2016 negative-rate policy reduced lending from low-profitability banks holding reserves, consistent with lower expected returns on bank assets rather than deposit-side stress.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=7489554
- Identifier: SSRN 7489554
- Released: 2026-09-19
- 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: Risk, Credit & Banking
- Authors: Koji Takahashi, Kiyotaka Nakashima

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