Research Discussion Paper – RDP 2022-07 The Term Funding Facility: Has It Encouraged Business Lending?

Contents

• Introduction
• Policy Design and Background
• The International Context
• Data
• Identification Strategies, Challenges and Assumptions
• Was the Additional Allowance Feature Effective?
• What Was the Effect of the Availability of the TFF on Business Lending?
• Did a Lender's Take-up of the TFF Affect Their Business Lending?
• Conclusion
• Appendix A: Data Description
• Appendix B: Coefficient Figures
• Appendix C: Full Results
• References

We are particularly grateful for James Bishop's feedback and technical help. We would also like to thank Ben Jackman, Carl Schwartz, Chris Kent, Claudia Kwapil, John Simon, Jonathan Kearns, Kilian Rieder, Marion Kohler, Susan Black and seminar participants at the Reserve Bank of Australia for helpful comments and discussion. The views expressed in this paper are those of the authors and do not necessarily reflect the views of the Reserve Bank of Australia. The authors are solely responsible for any errors.