College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …

This paper investigates the risk-taking channel of monetary policy on the asset side of banks' balance sheets. We use a … factor-augmented vector autoregression (FAVAR) model to show that aggregate lending standards of U.S. banks, e.g. their … equilibrium model, and show that - consistent with our empirical finding - a monetary easing implies an expansion of bank lending …

This paper studies the extent to which monetary policy may affect banks' perception of credit risk and the way banks … indicators on banks' risk weights for credit risk. We present robust evidence of the existence of the risk-taking channel in the … possible side-effects of monetary policy on how banks measure risk. …

This paper examines the relationship between central bank funding and credit risk-taking. Employing comprehensive bank …-firm-level data from the German credit registry during 2009:Q1-2014:Q4, we find that borrowing from the central bank is associated … with rebalancing of bank portfolios towards ex-ante riskier firms. We further establish that this relationship is …

We study the relationship between banks' size and risk-taking in the context of supranational banking supervision …-big-to-fail effect, we find an inverse relationship between banks' size and non-performing loan growth for a sample of European banks …-up rather than incentives alignment among the supervisors and the banks. …