%0 e Book %A Koenig, Philipp J. and Schliephake, Eva %I Deutsche Bundesbank %D 2021 %C Frankfurt am Main %D 2021 %G English %B Discussion paper / Deutsche Bundesbank %@ 9783957298508 %@ 3957298504 %~ Universitätsbibliothek "Georgius Agricola" %T Bank risk-taking and impaired monetarypolicy transmission %U https://www.bundesbank.de/resource/blob/820882/6e2e195479a8d0978033e0ab2c90f8a0/mL/2021-11-22-dkp-42-data.pdf %X 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. %Z https://katalog.ub.tu-freiberg.de/Record/0-1779881754 %U https://katalog.ub.tu-freiberg.de/Record/0-1779881754