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Your search keyword '"Credit risk-taking"' showing total 2 results
Start Over Descriptor "Credit risk-taking" Topic g21
2 results on '"Credit risk-taking"'

1. 'In the Short Run Blasé, In the Long Run Risqué'.

Author

Jiménez, Gabriel, Ongena, Steven, Peydró, José-Luis, and Saurina, Jesús

Subjects
CREDIT risk, MONETARY policy, LIQUIDITY (Economics), BUSINESS cycles, PROBABILITY theory
Abstract

We identify the impact of short-term interest rates on credit risk-taking in the short and long run by analyzing a comprehensive credit register from Spain, a country where for the last twenty years monetary policy was mostly decided abroad. Duration analyses show that lower overnight rates prior to loan origination lead banks to lend more to borrowers with a worse credit history and to grant more loans with a higher per-period probability of default. Lower overnight rates during the life of the loan reduce this probability. Bank, borrower and market characteristics determine the impact of overnight rates on credit risk-taking. [ABSTRACT FROM AUTHOR]

Published
2017
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2. Central bank funding and credit risk-taking

Author

Bednarek, Peter, Dinger, Valeriya, te Kaat, Daniel Marcel, and von Westernhagen, Natalja

Subjects
TFP Growth, Credit Risk-Taking, O40, ddc:330, E44, G21, LTRO, Real Effects, E52, Bank Lending, Monetary Policy
Abstract

This paper examines the relationship between central bank funding and credit risk-taking. Employing comprehensive bank-firm-level data from the German credit registry during 2009:Q1-2014:Q4, we find that borrowing from the central bank is associated with rebalancing of bank portfolios towards ex-ante riskier firms. We further establish that this relationship is associated with the ECB's maturity extensions and that the risk-taking sensitivity of banks borrowing from the ECB is independent of idiosyncratic bank characteristics. Finally, we highlight that these shifts in bank lending might lead to an ex-post deterioration of bank balance sheets, but increase firm-level investment and employment.

Published
2020

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