Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/216788 
Year of Publication: 
2015
Citation: 
[Journal:] Open Economies Review [ISSN:] 1573-708X [Volume:] 26 [Issue:] 3 [Publisher:] Springer [Place:] Berlin, Heidelberg [Year:] 2015 [Pages:] 407-445
Publisher: 
Springer, Berlin, Heidelberg
Abstract: 
This paper examines the impact of monetary conditions on the risktaking behaviour of banks in the Czech Republic by analysing the comprehensive credit register of the Czech National Bank. Our duration analysis indicates that expansionary monetary conditions promote risk-taking among banks. At the same time, a lower interest rate during the life of a loan reduces its riskiness. While seeking to assess the association between banks’ appetite for risk and the short-term interest rate we answer a set of questions related to the difference between higher liquidity versus credit risk and the effect of the policy rate conditioned on bank and borrower characteristics.
Subjects: 
business cycle
credit risk
financial stability
lending standards
monetary policy
risk-taking
JEL: 
E5
E44
G21
Published Version’s DOI: 
Document Type: 
Article
Document Version: 
Manuscript Version (Preprint)
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