We provide a theoretical foundation for the claim that prolonged periods of easy monetary conditions increase bank risk … taking. The net effect of a monetary policy change on bank monitoring (an inverse measure of risk taking) depends on the … balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital …

The analysis of interconnectedness and contagion is an important part of the financial stability and risk assessment of …

This paper uses the Growth-at-Risk (GaR) methodology to examine how macrofinancial conditions affect the growth outlook …

We study the growth determinants in the Eastern Caribbean Currency Union (ECCU), using the Growth at Risk (GaR …

The growth-at-risk (GaR) framework links current macrofinancial conditions to the distribution of future growth. Its … GaR analysis, policymakers can quantify the likelihood of risk scenarios, which would serve as a basis for preemptive …

unhedged borrowers. This measure explicitly takes into account the indirect exchange rate risk that banks undertake when they … lend to borrowers that will not be able to repay in the event of a sharp depreciation. Such systemic risk taking is not …

This paper assesses liquidity risk for the United States (U.S.) bond mutual funds industry and performs a range of …