Monetary conditions and banks’ behaviour in the Czech Republic

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Open Economies Review ; ISSN: 1573-708X ; Volume: 26 ; Year: 2015 ; Issue: 3 ; Pages: 407-445 ; Berlin, Heidelberg: Springer

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: business cycle ; credit risk ; financial stability ; lending standards ; monetary policy ; risk-taking

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Geršl, Adam ; Jakubík, Petr ; Kowalczyk, Dorota ; Ongena, Steven ; Peydró, José-Luis
• Event: Veröffentlichung
• (who): Springer ; ZBW – Leibniz Information Centre for Economics
• (where): Berlin, Heidelberg
• (when): 2015

Further information

• DOI: doi:10.1007/s11079-015-9355-y
• Handle: http://hdl.handle.net/10419/216788
• Last update: 10.03.2025, 11:42 AM CET