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Bank risk-taking and impaired monetarypolicy transmission
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Authors and Corporations: | , |
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Other Authors: | Schliephake, Eva 1983- [Author] |
Type of Resource: | E-Book |
Language: | English |
published: | |
Series: |
Deutsche Bundesbank: Discussion paper ; no 2021, 42
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Subjects: | |
Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
ISBN: | 9783957298508 |
Summary: | We consider a standard banking model with agency frictions to simultaneously studythe weakening and reversal of monetary transmission and banks’ risk-taking in alow-interest environment. Both, weaker monetary transmission and higher risk-taking arise because lower policy rates impair banks’ net worth. The pass-throughto deposit rates, the level of excess reserves and the extent of the agency problembetween banks and depositors are crucial determinants of monetary transmission.If the deposit pass-through is sufficiently impaired, a reversal rate exists. For policyrates below the reversal rate further interest rate reductions lead to a disproportionalincrease in risk-taking and a contraction in loan supply. |
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Physical Description: | 1 Online-Ressource (circa 30 Seiten) |
ISBN: | 9783957298508 |