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We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new … ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators …. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the …
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We augment a standard monetary DSGE model to include a banking sector and financial markets. We fit the model to Euro Area and US data. We find that agency problems in financial contracts, liquidity constraints facing banks and shocks that alter the perception of market risk and hit financial...
Persistent link: https://www.econbiz.de/10011605238
this policy through banks. This paper examines the role of bank liquidity, capitalization and market power as internal … monetary policy change on bank performance is also considered. The empirical analysis, using large panel datasets for the … rates by disaggregating down to the individual bank level. This is achieved by the use of a Local GMM technique that also …
Persistent link: https://www.econbiz.de/10011605279
Using a Panel VAR model and annual bank level data for the period 2008-2022, this study investigated banks risk taking …. Estimation results found monetary policy tightening and equity levels reduces the bank risk taking behavior thus evidence of … monetary policy risk-taking transmission channel. However, the contrary was reported with regard to bank liability: - non …
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