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Bank risk and monetary policy

by Yener Altunbas, Leonardo Gambacorta and David Marqués-Ibáñez

We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators. We show that bank risk conditions, as perceived by financia... Full description

Year of Publication: 2009
Authors: Altunbas, Yener; Gambacorta, Leonardo; Marqués-Ibáñez, David
Publisher: Frankfurt am Main : European Central Bank
Physical Description: Online-Ressource, (29 S., 662 KB)
Series: Working paper series / European Central Bank ; 1075
Language: English
Subjects: Geldpolitik | Monetary policy | Kreditgeschäft | Bank lending | Geldpolitische Transmission | Monetary transmission | Bankrisiko | Bank risk | EU-Staaten | EU countries
Classification: jel-E44; jel-E55
Type of Publication (narrower categories): Arbeitspapier
Working Paper
Graue Literatur
Non-commercial literature
Type of Publication: Book / Working Paper
Notes: Systemvoraussetzungen: Acrobat Reader
Title record from database: ECONIS - Online Catalogue of the ZBW
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Summary: We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the other indicators (i.e. size, liquidity and capitalization), traditionally used in the bank lending channel literature to assess a bank’s ability and willingness to supply new loans. Using a large sample of European banks, we find that banks characterized by lower expected default frequency are able to offer a larger amount of credit and to better insulate their loan supply from monetary policy changes. -- Bank ; risk ; bank lending channel ; monetary policy
Item Description: Systemvoraussetzungen: Acrobat Reader
Physical Description: Online-Ressource, (29 S., 662 KB)

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