» Do Negative Interest Rates Affect Bank Risk-Taking? »
Mardi | 2020-03-05 Salle B.103 12h15 16h45 Alessio BONGIOVANNI We offer early evidence on the impact of negative interest rate policy (NIRP) on bank risk-taking. Our robust empirical evidence finds banks in NIRP-adopter countries reduce holdings of risky assets by around 10 percentage points compared to banks in non-adopter countries. This supports the “deleverage” hypothesis, which posits that banks opt to cleanse weakened balance sheets by investing in safer liquid assets, such as, sovereign bonds due to favourable, zero risk […]