This paper shows that a rate hike has countervailing effects on banks' risk appetite. It reduces risk when the debt … burden of the banking sector is modest. We model a regulator whose trade-off between bank risk and credit supply is derived … has through bank incentives. The larger the correlation between banks' projects, the more important the role for monetary …

banks' funding costs and corporate lending rates. Using a dataset of 26 Dutch banks from January 2008 to December 2011, I … find that banks which are just above/below their quantitative liquidity requirement do not charge higher interest rates for … corporate lending. This effect is caused by banks being not able to pass on their increased funding costs in the interbank …

This paper investigates the size and development of Dutch banks' interest rate risk positions in the banking book … positions do, however, vary significantly between banks and over time. In fact, banks adjust their interest rate risk in order … and has a U-shaped relation with solvability for banks that do not use derivatives. Banks that receive government …

How do banks operate in a negative policy rate environment? Bank profitability is threatened by policy rate cuts in … negative territory because the zero lower bound on retail deposit rates prevents banks from benefiting from cheaper deposit … funding costs. Contrary to some earlier research, this paper finds that banks most affected by negative rates through this …

role of sovereign and credit risk as two alternative explanations for the increase in financial fragmentation. A key … credit risk on bank retail rates is negligible. Our results suggest that efforts to reduce sovereign tensions -- as …

This paper studies the impact of the negative interest rate policy (NIRP) on euro area banks’ interest rate margins …, using bank-individual data for the 2007-2019 period. An important extension to other studies is our breakdown of banks …’ interest rate margin into a funding and lending component. Because of banks’ reluctance to reduce the interest rate on …

lending standards using micro-data from the sample of banks participating in the Eurosystem Bank Lending Survey in The …

This study investigates what drives the credit cycle, focusing on the role of foreign funded bank credit (FFC …). Considering credit cycles in 41 countries over the period 1985-2015, this study finds that credit booms are associated with an … credit cycles. The impact of FFC on credit booms is however significantly higher in emerging countries. While FFC increases …

, inflation, the short-term interest rate, bank lending, as well as loan loss provisioning by banks (as proxy for credit risk …This paper examines how credit risk affects bank lending and the business cycle. We estimate a panel Vector …

covering the commercial real estate portfolios of Dutch banks we aim to uncover potential drivers of distress in commercial … the importance of bank behavior for distinguishing between good and bad credit growth. We find that loans originated near … higher credit risk are loan-to-value ratios and interest rates, especially when coupled with variable rate contracts …