Monetary policy, funding cost and banks’ risk-taking: evidence from the USA

Recommend Faculti to your resource manager

How much deposits and equity a bank has influences how a banks’ lending responds to monetary policy. While the responsiveness for the bank lending channel has been well established, this is not the case for the risk-taking channel (RTC). Constantin Bürgi discusses a value-at-risk RTC model that the lending for banks with relatively more equity and non-interest-bearing deposits should respond less to monetary policy tightening.

Image courtesy of interviewee

Read the Study
Log-in or Sign-up to Faculti
Currently viewing this subject insight as a guest. You have insight(s) remaining for this month.

Leave a Reply

Your email address will not be published.

Copyright © Faculti Media Limited 2013 - 2024. All rights reserved.