The role of bank capital as a propagation channel of shocks is strongly pronounced in recent macroeconomic models. In … this paper, we show how the evolution of bank capital depends on the share of non-state-contingent assets in banks’ balance …

bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing …This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in … the risk-free rate increases lending profitability by reducing funding costs and increasing the surplus the monopolistic …

bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing …This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in … the risk-free rate increases lending profitability by reducing funding costs and increasing the surplus the monopolistic …

bank lending and risk-taking channels of monetary policy by exploiting – Italian's unique – credit and security registers …

-taking through higher leverage. Lower monetary policy rates increase lending profitability which can encourage the bank to take more …This paper develops a dynamic bank model to show that expansionary monetary shocks can increase bank risk …. However, the relationship can be non-monotonic. When the bank cannot issue equity, a small reduction in monetary policy rates …

bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing …This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in … the risk-free rate increases lending profitability by reducing funding costs and increasing the surplus the monopolistic …