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Abstract Using a panel dataset of 9421 banks from 59 countries over the period 2009–2018 and a Difference-in-Differences estimator, this paper aims to assess the effects of negative interest rates… Click to show full abstract
Abstract Using a panel dataset of 9421 banks from 59 countries over the period 2009–2018 and a Difference-in-Differences estimator, this paper aims to assess the effects of negative interest rates on banks’ risk-taking. We find that banks’ risk-taking has been lower in countries where negative rates have been implemented. This effect depends on the characteristics of a country’s banking system, namely the level of capitalization and size.
Keywords:
negative interest;
rates policy;
risk taking;
banks risk;
interest rates
Journal Title: Economics Letters
Year Published: 2020
Link to full text (if available)
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Journal Title: Economics Letters
Year Published: 2020
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!