Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk-Taking?

# Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk-Taking? > OpenAlex Metadata Hub · https://openalex.org/W3049243281 ## Bibliographic - **DOI:** 10.3982/ecta10104 - **Year:** 2014 - **Citations:** 1325 - **Open Access:** Yes (bronze) - **License:** — - **Source:** https://onlinelibrary.wiley.com/doi/pdfdirect/10.3982/ECTA10104 ## Authors - Gabriel Jiménez - Steven Ongena - José-Luis Peydró - Jesús Saurina ## Abstract We identify the effects of monetary policy on credit risk-taking with an exhaustive credit register of loan applications and contracts. We separate the changes in the composition of the supply of credit from the concurrent changes in the volume of supply and quality, and the volume of demand. We employ a two-stage model that analyzes the granting of loan applications in the first stage and loan outcomes for the applications granted in the second stage, and that controls for both observed and unobserved, time-varying, firm and bank heterogeneity through time*firm and time*bank fixed effects. We find that a lower overnight interest rate induces lowly capitalized banks to grant more loan applications to ex ante risky firms and to commit larger loan volumes with fewer collateral requirements to these firms, yet with a higher ex post likelihood of default. A lower long-term interest rate and other relevant macroeconomic variables have no such effects. ## Keywords Collateral, Loan, Monetary economics, Monetary policy, Interest rate, Commit, Economics, Ex-ante, Fixed interest rate loan, Business, Credit risk, Financial system, Actuarial science, Finance, Macroeconomics ## Concepts - Collateral - Loan - Monetary economics - Monetary policy - Interest rate - Commit - Economics - Ex-ante - Fixed interest rate loan - Business - Credit risk - Financial system - Actuarial science - Finance - Macroeconomics - Database - Computer science --- *Metadata only — full text not imported unless Open Access license permits.*

Bài “Hazardous Times for Monetary Policy: What Do Twenty-Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk-Taking?” được TradingBase chuyển thành Knowledge Product cho trader — không phải trang đọc abstract OpenAlex. Tóm lược học thuật (đã diễn giải): We identify the effects of monetary policy on credit risk-taking with an exhaustive credit register of loan applications and contracts. We separate the changes in the composition of the supply of credit from the concurrent changes in the volume of supply and quality, and the volume of demand. We employ a two-stage model that analyzes the granting of loan applications in the first stage and loan outcomes for the applications granted in the second stage, and that controls for both observed and unobserved, time-varying, firm and bank heterogeneity through time*firm and time*bank fixed effects. We find that a lower overnight interest rate induces lowly capitalized banks to grant more loan applications to ex ante risky firms and to commit larger loan volumes with fewer collateral requirements to these firms, yet with a higher ex post likelihood of default. A lower long-term interest rate and … Phần Trading Insights bên dưới nối nghiên cứu với Forex, vàng, USD, lãi suất và risk regime — để bạn đưa vào journal và playbook. Metadata DOI/OA chỉ là rail tham chiếu; nội dung chính là summary, takeaways và ứng dụng thị trường do Content Factory sinh.