, the balance depends on the degree of bank capitalization: when facing a policy rate cut, well capitalized banks decrease …We provide a theoretical foundation for the claim that prolonged periods of easy monetary conditions increase bank risk … taking. The net effect of a monetary policy change on bank monitoring (an inverse measure of risk taking) depends on the …

portfolios are grouped into three separate groups based on the size of the bank to which they belong, in particular, large … scenarios aims at studying the effects which may be brought about on the capital of the three representative banks by the …