balance of three forces: interest rate pass-through, risk shifting, and leverage. When banks can adjust their capital …, the balance depends on the degree of bank capitalization: when facing a policy rate cut, well capitalized banks decrease … monitoring, while highly levered banks increase it. Further, the balance of these effects depends on the structure and …

This study specifically explores the effect of domestic political and economic risks on risk-taking in the banking … estimation results underscore that a rise in political and economic risks triggers risk-taking behavior in the banking sector …