This paper uses loan application-level data from a peer-to-peer lending platform to study the risk-taking channel of monetary policy. By employing a direct ex-ante measure of risk-taking and estimating the simultaneous equations of loan approval and loan amount, we are the first to provide...

This paper uses loan application-level data from a peer-to-peer lending platform to study the risk-taking channel of monetary policy. By employing a direct ex-ante measure of risk-taking and estimating the simultaneous equations of loan approval and loan amount, we provide evidence of monetary...

Recent empirical evidence suggests that the state of banks' balance sheets plays an important role in the transmission of monetary policy and other shocks. This paper presents an international DSGE framework with credit market frictions and an active bank capital channel to assess issues...