Using an agent-based model, we investigate how monetary policy affects banks' risk-taking in terms of the profile of … their lending to real sector firms.Our agent-based model considers five types of agents: banks, depositors, the Central Bank …, firms, and the clearinghouse. While banks and depositors are bounded-rational agents with adaptive strategies, the other …

Using an agent-based model, we investigate how monetary policy affects banks' risk-taking in terms of the profile of … their lending to real sector firms. Our agent-based model considers five types of agents: banks, depositors, the Central … Bank, firms, and the clearinghouse. While banks and depositors are bounded-rational agents with adaptive strategies, the …

conditions in source countries erode the net worth and collateral values of domestic borrowers, banks reallocate their claims … toward safer foreign counterparties. The cross-border reallocation of credit is more pronounced for banks in source countries … transmission mechanism through global banks …

Exploiting a granular dataset of banks' security holdings I assess the impact of unconventional monetary policy on bank …), this paper provides evidence for the presence of a yield-induced portfolio rebalancing channel: Banks experiencing a higher … real sector lending more strongly relative to other banks. The effect is stronger for banks facing many reinvestment …

portfolio rebalancing channel. NIRP affects banks with higher ex-ante net short-term interbank positions or, more broadly, more … liquid balance-sheets, not with higher retail deposits. NIRP-affected banks rebalance their portfolios from liquid assets to …

a yield-induced portfolio rebalancing channel: Banks experiencing a larger average yield decline in their securities … portfolio - induced by unconventional monetary policy - increase their real sector lending more strongly relative to other banks …. The effect is stronger for banks facing many reinvestment decisions. Moreover, I find that banks with larger yield …

and screening by banks and imperfect competition in the credit market. A bank tries to maximize expected profits subject … frontier. The paper also examines duopoly competition between aggressive (predator) and defensive (prey) banks and potential … portfolio returns are negatively correlated between any pair of interacting banks as it reduces portfolio variance for a given …