ECB paper presents evidence of risk-taking channel in US
Working paper finds interest rates affect the quality of bank credit in the US
Interest rates in the US have a small "but economically meaningful" effect on bank risk-taking, according to a working paper published by the European Central Bank (ECB).
Giovanni Dell'Ariccia, Luc Laeven and Gustavo Suarez use confidential data on banks' internal ratings on loans to businesses from 1997 to 2011, in Bank leverage and monetary policy's risk-taking channel: evidence from the United States.
They find the quality of lending, which they measure using the rating on new loans, drops
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@centralbanking.com
Most read
- ECB staff speak out against changes to internal survey
- Central bank of the year: Central Bank of Brazil
- Fed holds rates as it struggles with inflation’s last mile