When is it Less Costly for Risky RMS to Borrow? Evidence from the Bank Risk-Taking Channel of Monetary Policy

2012 ◽  
Author(s):  
Teodora Paligorova ◽  
João A. C. Santos
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk

Unconventional monetary policy and bank risk taking

2020 ◽  
Vol 109 ◽  
pp. 102233
Author(s):  
Thomas Matthys ◽  
Elien Meuleman ◽  
Rudi Vander Vennet
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk ◽  
Unconventional Monetary Policy

Monetary Policy and Bank Risk Taking

2010 ◽  
Author(s):  
Gianni De Nicolo ◽  
Giovanni Dell'Ariccia ◽  
Luc A. Laeven ◽  
Fabian V. Valencia
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk

scholarly journals Monetary Policy, Leverage, and Bank Risk-Taking

2010 ◽  
Author(s):  
Luc A. Laeven ◽  
Giovanni Dell'Ariccia ◽  
Robert S. Marquez
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk

scholarly journals Monetary Policy, Bank Competitiveness and Bank Risk-taking: Empirical Evidence from Vietnam

2018 ◽  
Vol 14 (2) ◽  
pp. 137-156
Author(s):  
Nguyen Tran Thai Ha ◽  
◽  
Phan Gia Quyen ◽  
Keyword(s):  
Monetary Policy ◽  
Empirical Evidence ◽  
Risk Taking ◽  
Bank Risk ◽  
Policy Bank

scholarly journals Does Monetary Policy Affect Bank Risk-Taking?

2010 ◽  
Author(s):  
Yener Altunbas ◽  
Leonardo Gambacorta ◽  
David Marques-Ibanez
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk

scholarly journals Bank Risk-Taking and Monetary Policy Transmission: Evidence from China

2020 ◽  
pp. 1.000-64.000
Author(s):  
Xiaoming Li ◽  
◽  
Zheng Liu ◽  
Yuchao Peng ◽  
Zhiwei Xu ◽  
...  
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk ◽  
Monetary Policy Transmission ◽  
Policy Transmission

scholarly journals Bank Risk-Taking and Monetary Policy Transmission: Evidence from China

2021 ◽  
Author(s):  
Xiaoming Li ◽  
Zheng Liu ◽  
Yuchao Peng ◽  
Zhiwei Xu
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk ◽  
Monetary Policy Transmission ◽  
Policy Transmission

Effect of monetary policy on bank risk: does market structure matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muntazir Hussain ◽  
Usman Bashir ◽  
Ahmad Raza Bilal
Keyword(s):  
Monetary Policy ◽  
Market Structure ◽  
Risk Taking ◽  
Bank Risk ◽  
Monetary Policy Transmission ◽  
Content Type ◽  
Bank Of China ◽  
Policy Transmission ◽  
Chinese Banking Industry

PurposeThe purpose of this paper is to investigate the risk-taking channel of monetary policy transmission in the Chinese banking industry. This study also investigates the role of various other factors in the risk-taking channel.Design/methodology/approachThis study used panel data from 2000 to 2012, and a dynamic panel model (Difference GMM) was applied.FindingsThe empirical findings of this paper suggest that loose monetary policy rates increase bank risk-taking. Unlike previous studies, the results of this paper suggest that the bank-specific factors (size, liquidity and capitalization) do not significantly affect the risk-taking channel. However, the market structure does have a stabilizing effect on monetary policy transmission and the risk-taking channel. Higher market power weakens the risk-taking channel of monetary policy transmission.Practical implicationsOf significance to the policymakers' point of view is that loose monetary policy induces banks to take excessive risks. However, such effects can be mitigated by encouraging a proper level of market power in banking markets.Originality/valueThis study investigated the risk-taking channel of monetary policy transmission for the Chinese banking industry. Due to the unique features of the People's Bank of China (PBC, Central Bank of China) policy, this study also contributes to the literature by comparing price-based and quantity-based monetary policy tools and their effectiveness in financial stability and monetary policy transmission. Furthermore, the role of market structure is also investigated in the risk-taking channel.

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