Monetary Conditions and Banks' Behaviour in the Czech Republic

Adam Gersl, Petr Jakubík, Dorota Kowalczyk, Steven Ongena and Jose-Luis Peydro

Working Papers from Czech National Bank, Research and Statistics Department

Abstract: This paper examines the impact of monetary conditions on the risk-taking behaviour of banks in the Czech Republic by analysing the comprehensive credit register of the Czech National Bank. Our duration analysis indicates that expansionary monetary conditions promote risk-taking among banks. At the same time, a lower interest rate during the life of a loan reduces its riskiness. While seeking to assess the association between banks’ appetite for risk and the short-term interest rate we answer a set of questions related to the difference between higher liquidity versus credit risk and the effect of the policy rate conditioned on bank and borrower characteristics.

Keywords: Business cycle; credit risk; financial stability; lending standards; liquidity risk; monetary policy; policy interest rate; risk-taking. (search for similar items in EconPapers)
JEL-codes: E44 E5 G21 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-cba, nep-mac, nep-mon and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.cnb.cz/export/sites/cnb/en/economic-re ... wp/cnbwp_2012_02.pdf

Related works:
Journal Article: Monetary Conditions and Banks’ Behaviour in the Czech Republic (2015)
Journal Article: Monetary conditions and banks’ behaviour in the Czech Republic (2015)
Working Paper: Monetary conditions and banks' behaviour in the Czech Republic (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2012/02

Access Statistics for this paper

More papers in Working Papers from Czech National Bank, Research and Statistics Department Contact information at EDIRC.
Bibliographic data for series maintained by Tomas Karhanek ().