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Monetary policy, leverage, and bank risk-taking
Dell'Ariccia, Giovanni; Laeven, Luc; Marquez, Robert - 2010
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 …
Persistent link: https://www.econbiz.de/10011892951
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Monetary Policy, Leverage, and Bank Risk-Taking
Dell'Ariccia, Giovanni - 2011
risk-taking. We study this issue in a model of leveraged financial intermediaries that endogenously choose the riskiness of … and higher risk. However, if the capital structure is fixed, the effect depends on the degree of leverage: following a … policy rate cut, well capitalized banks increase risk, while highly levered banks decrease it. Further, the capitalization …
Persistent link: https://www.econbiz.de/10013131455
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Monetary Policy, Leverage, and Bank Risk-Taking
Dell'Ariccia, Giovanni - 2010
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 …
Persistent link: https://www.econbiz.de/10014402651
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Collateral booms and information depletion
Asriyan, Vladimir; Laeven, Luc; Martin, Alberto - 2019
We develop a new theory of information production during credit booms. In our model, entrepreneurs need credit to undertake investment projects, some of which enable them to divert resources towards private consumption. Lenders can protect themselves from such diversion in two ways:...
Persistent link: https://www.econbiz.de/10011997468
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Banking risks around the world : the implicit safety net subsidy approach
Laeven, Luc - 2000
Persistent link: https://www.econbiz.de/10001535453
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Investing in crises
Baron, Matthew; Laeven, Luc; Pénasse, Julien; Usenko, … - 2021
We investigate asset returns around banking crises in 44 advanced and emerging economies from 1960 to 2018. In contrast to the view that buying assets during banking crises is a profitable long-run strategy, we find returns of equity and other asset classes generally underperform after banking...
Persistent link: https://www.econbiz.de/10012518234
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Corporate debt, boom-bust cycles, and financial crises
Ivashina, Victoria; Kalemli-Ozcan, Sebnem; Laeven, Luc; … - 2024
Using a new dataset on sectoral credit exposures covering financial and non-financial sectors in 115 economies over the period 1940–2014, we document the following evidence that corporate debt plays a key role in explaining boom-bust cycles, financial crises, and slow macroeconomic recoveries:...
Persistent link: https://www.econbiz.de/10014484200
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Investing in crises
Baron, Matthew; Laeven, Luc; Penasse, Julien; Usenko, … - 2021
Persistent link: https://www.econbiz.de/10012484608
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Financial Crises
Claessens, Stijn - 2014
Financial Crises: Causes, Consequences, and Policy Responses provides a comprehensive overview of research into financial crises and policy lessons learned. The book covers a wide range of crises, including banking, balance of payments, and sovereign debt crises. It begins with an overview of...
Persistent link: https://www.econbiz.de/10012677965
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Real interest rates, leverage, and bank risk-taking
Dell'Ariccia, Giovanni; Laeven, Luc; Marquez, Robert - In: Journal of economic theory 149 (2014), pp. 65-99
Persistent link: https://www.econbiz.de/10010258388