Credit, House Prices, and Risk Taking by Banks in Norway

Bericht

Motivated by alternative explanations of the financial crisis (e.g., Acharya and Richardson, 2010; Taylor, 2007), I study, first, repercussions between house price growth and household credit growth in Norway, and second, I analyse the impact of expansionary monetary policy on measures of bank portfolio risk (the risk-taking channel). Using aggregate quarterly data from 1979Q1 to 2010Q3, I find evidence of two-way causality between house price growth and household credit growth, but I find no evidence for the bank risk-taking channel: low key policy rates do not seem to have induced a higher share of troubled loans nor increased our measure of banks' riskiness.

Object Details

• ISBN: 978-82-7553-626-4
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Staff Memo ; No. 13/2011

Classification and Topics

• Classification: Wirtschaft ; Financial Markets and the Macroeconomy ; Monetary Policy, Central Banking, and the Supply of Money and Credit: General ; Money Supply; Credit; Money Multipliers ; Financial Crises ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages
• Subject: house prices ; household credit ; risk-taking ; money and credit

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Karapetyan, Artashes
• Event: Veröffentlichung
• (who): Norges Bank
• (where): Oslo
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/210229
• Last update: 10.03.2025, 11:47 AM CET