Does monetary policy affect bank risk-taking?
Yener Altunbas (),
Leonardo Gambacorta () and
David Marques-Ibanez ()
No 298, BIS Working Papers from Bank for International Settlements
This paper investigates the relationship between short-term interest rates and bank risk. Using a unique database that includes quarterly balance sheet information for listed banks operating in the European Union and the United States in the last decade, we find evidence that unusually low interest rates over an extended period of time contributed to an increase in banks' risk. This result holds for a wide range of measures of risk, as well as macroeconomic and institutional controls.
Keywords: bank risk; monetary policy; credit crisis (search for similar items in EconPapers)
Pages: 35 pages
New Economics Papers: this item is included in nep-ban and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (93) Track citations by RSS feed
Downloads: (external link)
http://www.bis.org/publ/work298.pdf Full PDF document (application/pdf)
Working Paper: Does monetary policy affect bank risk-taking? (2010)
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:bis:biswps:298
Access Statistics for this paper
More papers in BIS Working Papers from Bank for International Settlements Contact information at EDIRC.
Bibliographic data for series maintained by Christian Beslmeisl ().