Can low interest rates be harmful : an assessment of the bank risk-taking channel in Asia

Arief Ramayandi, Umang Rawat and Hsiao Chink Tang

Events surrounding the global financial crisis have brought to light the potential role of monetary policy in precipitating the crisis. Numerous studies on advanced economies have documented a significant negative relationship between interest rates and bank risk-taking. This paper also finds the presence of the risk-taking channel based on a panel of publicly listed bank data in Asia. Using both annual and quarterly data, "too low" interest rates are found to lead to an increase in bank risk-taking.

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Year of publication:	2014
Authors:	Ramayandi, Arief ; Rawat, Umang ; Hsiao Chink Tang
Publisher:	Mandaluyong City : Asian Development Bank
Subject:	Bank risk-taking \| interest rates \| panel data \| monetary policy \| Asian banks \| Geldpolitik \| Monetary policy \| Realzins \| Real interest rate \| Bankrisiko \| Bank risk \| Theorie \| Theory

Extent:	Online-Ressource (52 S.)
Series:	ADB working paper series on regional economic integration. - Mandaluyong City : [Verlag nicht ermittelbar], ZDB-ID 2701551-8. - Vol. 123
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	Systemvoraussetzungen: Acrobat Reader
Classification:	E43 - Determination of Interest Rates; Term Structure Interest Rates ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; G21 - Banks; Other Depository Institutions; Mortgages
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010336963