with excessive credit expansions, and to support macroprudential policy analysis. In MAPMOD, bank loans create purchasing … power that facilitates adjustments in the real economy. But excessively large and risky loans can impair balance sheets and … sow the seeds of a financial crisis. Banks respond to losses through higher spreads and rapid credit cutbacks, with …

This paper investigates the transmission of monetary policy by private banks in Brazil during the recent easing cycle …. The analysis presented uses a panel dataset with information on lending by private banks in Brazil and concludes that …

We present new evidence on how heterogeneity in banks interacts with monetary policy changes to impact bank lending …

on the internal ratings of U.S. banks on loans to businesses over the period 1997 to 2011 from the Federal Reserve …’s survey of terms of business lending. We find that ex-ante risk taking by banks (as measured by the risk rating of the bank’s … pronounced for banks with relatively low capital or during periods when banks’ capital erodes, such as episodes of financial and …

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 …

euro area banks. We first build a theoretical model in which banks compete in the credit and deposit markets. We … distinguish between direct and indirect effects. Direct effects take place because bidding banks expand their loan supply due to … environment in banks' credit and deposit markets. We then test these predictions with a sample of 130 banks from 13 countries …