Showing 1 - 2 of 2
I study the effect of interest rates on banks' lending standards. I find that low (high) interest rates discourage (encourage) screening but facilitate (hinder) effort provision. Less screening, as a result of low interest rates, increases the likelihood of a banking crisis. I further show that...
Persistent link: https://www.econbiz.de/10012902453
I study the effect of interest rates on banks' lending standards and find that low (high) interest rates discourage (encourage) screening but facilitate (hinder) effort provision. Less screening as a result of low interest rates increases the likelihood of a banking crisis. I further show that...
Persistent link: https://www.econbiz.de/10012870513