Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/212389 
Year of Publication: 
2017
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 18/2017
Publisher: 
Bank of Finland, Helsinki
Abstract: 
To study the presence of a risk-taking channel in the US, we build a comprehensive dataset from the syndicated corporate loan market and measure monetary policy using different measures, most notably Taylor (1993) and Romer and Romer (2004) residuals. We identify a negative relation between monetary policy rates and bank risk-taking, especially in the run up to the 2007 financial crisis. However, this effect is purely supply-side driven only when using Taylor residuals and an ex ante measure of bank risk-taking. Our results highlight the sensitivity of the potency of the risk-taking channel to the measures of monetary policy innovations.
JEL: 
G21
G01
E43
E52
Persistent Identifier of the first edition: 
ISBN: 
978-952-323-175-7
Document Type: 
Working Paper

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