We present evidence of a risk‐taking channel of monetary policy for the US banking system.
We use confidential data on banks' internal ratings on loans to businesses over the period …

Do low interest rate environments lead to greater bank risk-taking? We show that, when
banks can adjust their capital structures, reductions in real interest rates lead to greater …

Examining banks across 27 countries, we estimate two measures of the forward-looking
orientation reflected in discretionary loan provisioning practices within a country. We …

We identify the effects of monetary policy on credit risk‐taking with an exhaustive credit
register of loan applications and contracts. We separate the changes in the composition of …

Using novel data on bank applications to the Troubled Asset Relief Program (TARP), we
study the effect of government assistance on bank risk taking. Bailed-out banks initiate …

This paper is concerned with systemic risk in an interbank market, modelled as a directed
graph of interbank obligations. This builds on the modelling paradigm of Eisenberg and Noe …

This paper examines empirically the hypothesis that market discipline is effective in
providing incentives for banks to limit their risk of default, by holding capital buffers against …

While the too-big-to-fail guarantee is explicitly a part of bank regulation in many countries,
this paper shows that bank closure policies also suffer from an implicit “too-many-to-fail” …

We use a structural econometric model to provide empirical evidence that safety nets in the
banking industry lead to additional risk taking. To identify the moral hazard effect of bailout …

In 2001, government guarantees for savings banks in Germany were removed following a
lawsuit. We use this natural experiment to examine the effect of government guarantees on …