Monetary Policy, Bank Leverage, and Financial Stability /
This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in the risk-free rate increases lending profitability by reducing funding costs and increasing the surplus the monopolistic bank extracts from borrowers. Under limited liability, this i...
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| Aineistotyyppi: | Aikakauslehti |
| Kieli: | English |
| Julkaistu: |
Washington, D.C. :
International Monetary Fund,
2011.
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| Sarja: | IMF Working Papers; Working Paper ;
No. 2011/244 |
| Linkit: | Full text available on IMF |