Data on CDC and FDA Described by Researchers at Changzhou University (Monetary Policy Transmission Under Pandemic Uncertainty: Effect On Banks' Risk and Capital Adjustments).

A study conducted by researchers at Changzhou University in Jiangsu, China, examines the effects of monetary policy on banks' risk and capital adjustments during the COVID-19 pandemic. The study finds that when monetary policy is eased, banks tend to have lower portfolio risk and capital levels. However, during times of heightened pandemic uncertainty, the risk-reducing effect of monetary policy on banks is amplified, while bank capital levels remain unchanged. The study also reveals that banks with higher levels of diversification and herding are more responsive to interest rates during the pandemic, resulting in lower risk exposure in their asset portfolios. Additionally, the study suggests that banks in countries with negative interest rate policies tend to assume greater asset risk to accommodate the intended stimulus of monetary policies. [Extracted from the article]