Monetary conditions and banks’ behaviour in the Czech Republic

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

EconStor Open Access Articles and Book Chapters, 2015, vol. 26, issue 3, 407-445

Abstract: This paper examines the impact of monetary conditions on the risktaking 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; monetary policy; risk-taking (search for similar items in EconPapers)
JEL-codes: E44 E5 G21 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Monetary Conditions and Banks’ Behaviour in the Czech Republic (2015)
Working Paper: Monetary conditions and banks' behaviour in the Czech Republic (2015)
Working Paper: Monetary Conditions and Banks' Behaviour in the Czech Republic (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:espost:216788

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