Does Monetary Policy Affect Bank Risk?
Yener Altunbas (),
Leonardo Gambacorta () and
David Marques-Ibanez ()
International Journal of Central Banking, 2014, vol. 10, issue 1, 95-136
We investigate the effect of relatively loose monetary policy on bank risk through a large panel including quarterly information from listed banks operating in the European Union and the United States. We find evidence suggesting that relatively low levels of interest rates over an extended period of time contributed to an increase in bank risk. This result holds for a wide range of measures of risk, as well as macroeconomic and institutional controls including the intensity of supervision, securitization activity, and bank competition. The results suggest that monetary policy is not neutral from a financial stability perspective.
JEL-codes: E44 E52 G21 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (76) Track citations by RSS feed
Downloads: (external link)
Working Paper: Does monetary policy affect bank risk? (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ijc:ijcjou:y:2014:q:1:a:3
Access Statistics for this article
International Journal of Central Banking is currently edited by Loretta J. Mester
More articles in International Journal of Central Banking from International Journal of Central Banking
Bibliographic data for series maintained by Bank for International Settlements ().