Journal article
Monetary policy and bank risk-taking: Evidence from emerging economies
Emerging markets review, v 31, pp 116-140
Jun 2017
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This paper addresses the impact of monetary policy on banks' risk-taking by using bank-level panel data from more than 1000 banks in 29 emerging economies during 2000–2012. We find that, consistent with the proposition of the “bank risk-taking channel” of monetary policy transmission, banks' riskiness increases when monetary policy is eased. This result is robust when we adopt alternative measures of monetary policy and bank risk, and use different econometric methodologies. In addition, we find that bank risk-taking amid expansionary monetary policy is less conspicuous in a more consolidated banking sector and when monetary policy is more transparent.
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Details
- Title
- Monetary policy and bank risk-taking: Evidence from emerging economies
- Creators
- Minghua Chen - Southwestern University of Finance and EconomicsJi Wu - Southwestern University of Finance and EconomicsBang Nam Jeon - Drexel UniversityRui Wang - Southwestern University of Finance and Economics
- Publication Details
- Emerging markets review, v 31, pp 116-140
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000403127500008
- Scopus ID
- 2-s2.0-85017558748
- Other Identifier
- 991019330623004721
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- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Business, Finance
- Economics