view that monetary policy easing induces greater risk-taking by banks but also shows that the relationship between real … interest rates and banking risk is more complex. Ultimately, it depends on how much skin in the game banks have. The central …

We present evidence of a risk-taking channel of monetary policy for the U.S. banking system. We use confidential data …’s survey of terms of business lending. We find that ex-ante risk taking by banks (as measured by the risk rating of the bank …

is the evolution of banks’ stock price exposure to country-level and global risk factors as approximated by equity … indices; second, which bank-specific characteristics explain these risk exposures; third, are there clusters of banks with … equity price linkages beyond market risk factors. The paper finds a rise in sensitivities to both country and global risk …