EconPapers    
Economics at your fingertips  
 

Are central banks to blame? Monetary policy and bank lending behavior

Nektarios Michail, Christos Savva () and Demetris Koursaros ()

Bulletin of Economic Research, 2021, vol. 73, issue 4, 762-779

Abstract: This paper tests the conjecture that easy money policies of central banks, that is setting low rates for long, are responsible for the excess risk‐taking behavior that led to the global financial crisis. If the conjecture holds then policy rate shocks should have persistent effects on bank behavior either through the bank lending or the risk‐taking channel. Using data for the period prior to the global financial crisis, and a shock persistence methodology, we find that the policy rate has only limited idiosyncratic effects on bank lending growth and no effect on credit risk.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1111/boer.12273

Related works:
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:bla:buecrs:v:73:y:2021:i:4:p:762-779

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0307-3378

Access Statistics for this article

More articles in Bulletin of Economic Research from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2023-01-19
Handle: RePEc:bla:buecrs:v:73:y:2021:i:4:p:762-779