Bank of the Republic of Macedonia (NBRM), which is complemented with data from banks' balance sheets. By using pooled OLS … ex-ante risk rating assigned by the banks, a finding that is supportive to the existence of the risk-taking channel …, although the effect is relatively small. The results prove to be robust after controlling for several bank, loan and time …

account for the observed default and leverage dynamics. Following an adverse aggregate shock, banks deleverage through two … as an expansion of the central bank's balance sheet countering the disruption in private financial intermediation …