quantity and the composition of bank lending. We find that credit supplied by banks that introduced the model-based approach … exhibits a higher sensitivity to model-based PDs as compared with credit supplied by banks that remained under the traditional …

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 …