Hence we also account for bank- specific characteristics (size, liquidity, capitalization, lending portfolios, profitability), macroeconomic factors ( GDP , housing and equity

In the following parts, we will discuss the relationship between bank monitoring effort level (bank risk taking) and policy rate, when banks are facing a convex monitoring

In our model the first effect, the interest rate pass-through effect, dominates in equilibrium: thus, a lower level of the monetary policy interest rate and a lower return on loans

In our simplified economy the strategic interaction between the two players manifests itself in two ways: first, the fact that risky behavior on the part of the bank increases

Then expansionary bank credits which were induced by ease monetary policy will cause asset price bubble and aggravate financial imbalance.. In chapter 3, we will first

Motivated by the empirical finding that expansionary monetary policy shocks persistently increase bank asset risk in the US, we model bank asset risk taking in a DSGE framework

Motivated by the empirical finding that expansionary monetary policy shocks persistently increase bank asset risk in the US, we model bank asset risk taking in a DSGE framework

Third, previous papers analyzing the bank lending channel or the risk-taking channel regress bank-level loans or risk on the monetary policy interest rate, GDP growth, or asset

We invite unpublished novel, original, empirical and high quality research work pertaining to the recent developments & practices in the areas of Com- puter Science &

Hence, as long as the monetary policy is passive, the bank risk is not feed by the monetary policy as credit risk does not respond to interest rate and leverage shows a small

Risk taking channel of monetary policy was firstly presented by Borio and Zhu in a report [4]. They noticed the potential link between low interest rates and rising bank

Internet finance is expanding in the near exponential growth,which is an opportunity but also a serious challenge for the traditional financial institution.The Internet finance not

Monetary policy, excessive risk-taking and banking crisis.

Using a large sample of European banks, we find that bank risk plays an important role in determining banks’ loan supply and in sheltering it from the effects of monetary

［ Abstract ］ Based on the mechanism of monetary policy affecting the risk-taking of banks, this paper summarizes four channels of the impacts of monetary policy on the risk-taking

The reversal occurs when banks expect a rise in (nominal) interest rates and/or when official interest rates actually increase. By substituting investors by banks and

Our finding that easing banks put less weight on risk when they set rates on loans they extend in periods of low short-term rates adds important support to our prior assertion that

The risk equation relates variation in bank returns to the internal factors of level of return, asset composition, asset quality, and external conditions related to the level