scholarly journals Negative Interest Rates, Bank Profitability and Risk-taking

2019 ◽  
Author(s):  
Whelsy Boungou
Keyword(s):  
Interest Rates ◽  
Risk Taking ◽  
Bank Profitability ◽  
Negative Interest Rates

scholarly journals The Effects on Investment Behavior of Zero Interest Rate Policy—Evidence From a Roulette Experiment

2019 ◽  
Vol 6 (4) ◽  
pp. 18 ◽  
Author(s):  
Christian A. Conrad
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Risk Taking ◽  
Investment Decision ◽  
Investment Behavior ◽  
Real Economy ◽  
Interest Rate Policy ◽  
Capital Costs ◽  
Investment Decision Making ◽  
Negative Interest Rates

This paper examines the effects of interest rate cuts on investment behavior. The methodology is to simulate investment decision making under different capital costs. The experiment showed that decreasing interest rates encourage risk-taking. With the decreased interest rate as borrowing costs the risk taking increased weakly but continuously. The risk taking increased strongly when the interest rate reached zero. Thus the experiment showed excessive risk-taking when there were no capital costs. This finding supports the hypothesis that extreme expansive monetary policy with low, zero or negative interest rates encourage financial bubbles and overinvestments or wrong investments in the real economy.

scholarly journals Do negative interest rates affect bank risk-taking?

2021 ◽  
Author(s):  
Alessio Bongiovanni ◽  
Alessio Reghezza ◽  
Riccardo Santamaria ◽  
Jonathan Williams
Keyword(s):  
Interest Rates ◽  
Risk Taking ◽  
Bank Risk ◽  
Negative Interest Rates

How Negative Interest Rates Affect the Risk-Taking of Individual Investors: Experimental Evidence

2018 ◽  
Author(s):  
Maren Baars ◽  
Henning Cordes ◽  
Hannes Mohrschladt
Keyword(s):  
Interest Rates ◽  
Experimental Evidence ◽  
Risk Taking ◽  
Individual Investors ◽  
Negative Interest Rates

scholarly journals IMPLICATIONS OF LOW INTEREST RATES ON BANK PROFITABILITY AND RISK-TAKING

2021 ◽  
pp. 1-27
Author(s):  
MANUELA ENDER ◽  
CORINNA NEUHOFER
Keyword(s):  
Interest Rates ◽  
Risk Taking ◽  
Qualitative Content Analysis ◽  
Negative Influence ◽  
Mitigation Strategies ◽  
Bank Profitability ◽  
Interest Income ◽  
Low Interest Rates ◽  
State Of Research ◽  
The Impact

This paper investigates the effect of low interest rates on bank profitability and risk-taking. A comprehensive depiction of the current state of research was developed based on systematic literature review and qualitative content analysis. A low interest rate environment, as present in many economies, has various implications on bank profitability and risk-taking. A positive relationship is found between interest rates and net interest income, while the relationship with non-interest income is negative. Also, banks increase risk-taking in search for yield. The influence on bank profitability is highly dependent on several factors, but in most papers a negative influence is found. Throughout the world banks have managed to limit the impact through mitigation strategies, such as diversification, which are presented as guidance.

scholarly journals Bank profitability and risk-taking under low interest rates

2017 ◽  
Vol 23 (1) ◽  
pp. 3-18 ◽  
Author(s):  
Jacob A. Bikker ◽  
Tobias M. Vervliet
Keyword(s):  
Interest Rates ◽  
Risk Taking ◽  
Bank Profitability ◽  
Low Interest Rates

How negative interest rates affect the risk-taking of individual investors: Experimental evidence

2020 ◽  
Vol 32 ◽  
pp. 101179 ◽  
Author(s):  
Maren Baars ◽  
Henning Cordes ◽  
Hannes Mohrschladt
Keyword(s):  
Interest Rates ◽  
Experimental Evidence ◽  
Risk Taking ◽  
Individual Investors ◽  
Negative Interest Rates

scholarly journals Negative interest rates policy and banks’ risk-taking: Empirical evidence

2020 ◽  
Vol 186 ◽  
pp. 108760 ◽  
Author(s):  
Whelsy Boungou
Keyword(s):  
Interest Rates ◽  
Empirical Evidence ◽  
Risk Taking ◽  
Negative Interest Rates
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