interest rate change on the risk-taking of a bank in consideration of its profit and asset structure. The risk-taking is … proxied by the risk weight of a bank, derived from its BIS capital ratio. We show that in Korea, an interest rate increase … (decrease) make a bank bear less (more) risk. The risk-taking of a bank more profitable is less sensitive to an interest rate …

(2013), featuring a segmented banking sector, is estimated for the euro area and combined with a bank portfolio optimisation … programme. We analyse the macroeconomic effects of the Asset Purchase Programme via the banking system, exploiting the cross …-section of individual bank portfolio decisions. For this purpose, an augmented version of the DSGE model of Gertler and Karadi …

interest margin (NIM) and its components, retail lending and retail deposit rates. Using two proprietary bank-level data sets …