Real interest rates, leverage, and bank risk-taking

By Giovanni Dell'Ariccia, Luc Laeven, Robert Marquez. Journal of Economics Theory, 2014

431 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/9709ffdc04a67ff95ef1b6217c41a7f662aaa6bf

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Citations in the corpus

Effects of Unconventional Monetary Policy on Financial Institutions (2014, background): “…constraints or reserve requirements, the decline in the opportunity cost leads to larger total portfolios and higher leverage (Stein, 2012; Dell’Ariccia et al., 2014; Drechsler et al., 2013).6 Brunnermeier and Sannikov (2014) describe a related phenomenon stemming from the low volatility…”
National culture and bank risk-taking (2017, background): “Dell ʼ Ariccia et al. (2014) and Bhagat et al. (2015) associate bank leverage, that is, the ratio of equity capital to total assets, with bank risk.”
Bank Leverage and Monetary Policy's Risk-Taking Channel: Evidence from the United States (2016, neutral): “This essentially bounds 𝑘 from below (see Dell’Ariccia, Laeven, and Marquez (2014) for a discussion).”
Life below Zero: Bank Lending under Negative Policy Rates (2019, positive): “…for the identification of the bank risk-taking channel (for more on this as well as the distinction between search-for-yield and risk taking, see Dell’Ariccia, Laeven, and Marquez (2014); Dell’Ariccia, Laeven, and Suarez (2016)). willing to finance riskier firms without adjusting their loan…”
Monetary Policy, Financial Conditions, and Financial Stability (2014, positive): “A theoretical setting that studies this risk-shifting effect is presented by Dell’Ariccia and Marquez (2013) and Dell’Ariccia, Laeven, and Marquez (2014).”
Monetary stimulus and bank lending (2020, positive): “…this literature investigates the connection between lower interest rates and bank activity (e.g., Maddaloni and Peydró, 2011; Jiménez et al., 2014; Dell’Ariccia et al., 2014 ), negative interest rates and bank 2 Another strand of literature investigates the effects of post-crisis fiscal and…”