This study investigates if expansionary monetary policy actions have an impact on banks’ risk taking after the financial crisis. Using time series data from December 2008 to April 2016 from the banking sector, the paper finds no evidence of any impact by asset related expansionary monetary policy actions while credit crunch and expected economic conditions are found to have a significant effect on banks’ risk taking decision. These results imply that the risk-taking channel of monetary policy has been ineffective after the fed funds rate reached the zero lower bound.
Preferred Citation Style (e.g. APA, MLA, Chicago, etc.)
Beyene, Nardos Moges
"The Impact of Monetary Policy on Banks’ Risk-taking: Evidence from the Post Crisis Data,"
The Hilltop Review: Vol. 9
, Article 9.
Available at: http://scholarworks.wmich.edu/hilltopreview/vol9/iss2/9