Economic Sectors and the Risk-taking Channel of Monetary Policy

Martha López

Cuadernos de Economía - Spanish Journal of Economics and Finance, 2020, vol. 43, issue 123, 275-290

Abstract: This paper contributes to the empirical literature of the risk-taking channel of mo-netary policy and enhance the range of the analysis in terms of studying which economic sectors are more vulnerable to it. We use loan level microdata for 3019 Colombian firms be-tween 2005:1 and 2014:3. our results show strong evidence of the channel for the economy as a whole and a stronger effect in the agriculture and services sectors for ex-ante risky firms. These results are supported also for ex post credit risk. The firms affected the most are the less profitable and the less leveraged.

Keywords: Monetary policy; Credit risk; Supply of credit; Bank capital; Financial stability (search for similar items in EconPapers)
JEL-codes: E44 E51 E52 G10 G20 (search for similar items in EconPapers)
Date: 2020
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Working Paper: Economic Sectors and the Risk-taking Channel of Monetary Policy (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cud:journl:v:43:y:2020:i:123:p:275-290

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