Leverage and Risk-Taking Channel of Monetary Policy: Evidence from the Euro Area Banking Industry

2020 ◽  
Author(s):  
Bruno De Menna
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking ◽  
Banking Industry

scholarly journals Investment Funds, Risk-Taking, and Monetary Policy in the Euro Area

2021 ◽  
Author(s):  
Margherita Giuzio ◽  
Christoph Kaufmann ◽  
Ellen Ryan ◽  
Lorenzo Cappiello
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking ◽  
Investment Funds

scholarly journals Negative Monetary Policy Rates and Systemic Banks' Risk-Taking: Evidence from the Euro Area Securities Register

2020 ◽  
Author(s):  
Johannes Bubeck ◽  
Angela Maddaloni ◽  
Jose-Luis Peydro
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking

scholarly journals The Risk-Taking Channel of Monetary Policy Transmission in the Euro-Area

2018 ◽  
Author(s):  
Matthias Neuenkirch ◽  
Matthias Nöckel
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking ◽  
Monetary Policy Transmission ◽  
Policy Transmission

Monetary policy and systemic risk-taking in the euro area banking sector

2020 ◽  
Vol 91 ◽  
pp. 736-758 ◽  
Author(s):  
Alain Kabundi ◽  
Francisco Nadal De Simone
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking ◽  
Systemic Risk ◽  
Banking Sector

scholarly journals Negative Monetary Policy Rates and Systemic Banks’ Risk-Taking: Evidence from the Euro Area Securities Register

2020 ◽  
Author(s):  
Johannes Bubeck ◽  
Angela Maddaloni ◽  
Jose-Luis Peydro
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking

scholarly journals Bank risk aversion and the risk-taking channel of monetary policy in the euro area

2017 ◽  
Vol 64 (5) ◽  
pp. 607-621
Author(s):  
Silvo Dajcman
Keyword(s):  
Monetary Policy ◽  
Risk Aversion ◽  
Euro Area ◽  
Risk Taking ◽  
Academic Research ◽  
Bank Lending ◽  
Bank Risk ◽  
Econometric Methodology ◽  
Survey Responses ◽  
Panel Vector Autoregression

The financial crisis has provoked economic policy interest and academic research on the functioning and empirical verification of the risktaking channel of monetary policy. The results of this paper demonstrate how the European Central Bank?s Bank lending survey responses can be used to construct a ?pure? risk aversion indicator of banks? business lending. Using panel vector autoregression econometric methodology, we find evidence that the monetary policy affects the ?pure? risk aversion of banks and later affects business loans and inflation in the euro area. The results suggest that the risktaking channel in the euro area is operational.

scholarly journals Shadow banks and the risk-taking channel of monetary policy transmission in the euro area

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Arina Wischnewsky ◽  
Matthias Neuenkirch
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking ◽  
Banking Sector ◽  
Shadow Banking ◽  
Monetary Policy Transmission ◽  
Monetary Policy Shocks ◽  
Shadow Banks ◽  
Policy Transmission ◽  
Policy Shocks

AbstractWe provide evidence for a risk-taking channel of monetary policy transmission in the euro area that works through an increase in shadow banks’ total asset growth and their risk assets ratio. Our dataset covers the period 2000Q1–2018Q3 and includes, in addition to the standard variables for real GDP growth, inflation, and the monetary policy stance, the aforementioned two indicators for the shadow banking sector. Based on vector autoregressive models for the euro area as a whole, we find a portfolio reallocation effect towards riskier assets and evidence for a general expansion of assets. Both effects last for roughly six quarters in the case of conventional monetary policy shocks, whereas for unconventional monetary policy shocks the responses are significant for two quarters only. Country-specific as well as sector-specific estimations confirm these findings for most of the euro area countries and all non-bank types, but also reveal some heterogeneity in the reaction of financial institutions.

scholarly journals Negative Monetary Policy Rates and Systemic Banks' Risk‐Taking: Evidence from the Euro Area Securities Register

2020 ◽  
Vol 52 (S1) ◽  
pp. 197-231 ◽  
Author(s):  
JOHANNES BUBECK ◽  
ANGELA MADDALONI ◽  
JOSÉ‐LUIS PEYDRÓ
Keyword(s):  
Monetary Policy ◽  
Euro Area ◽  
Risk Taking
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