Negative Interest Rates Policy and Banks' Risk-Taking: Empirical Evidence
Résumé
Using a panel dataset of 9421 banks from 59 countries over the period 2009–2018 and a Difference-
in-Differences estimator, this paper aims to assess the effects of negative interest rates on banks’
risk-taking. We find that banks’ risk-taking has been lower in countries where negative rates have
been implemented. This effect depends on the characteristics of a country’s banking system, namely
the level of capitalization and size.
Domaines
Economies et finances
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