Short-term interest rates and bank lending terms: evidence from a survey of U.S. loans
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Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
Banco Central de Chile
Abstract
Description
The long period of low interest rates that followed the global financial crisis has rekindled interest in how short-term interest rates affect bank behavior. In particular it has led to a debate on how low policy rates influence bank risk-taking. This risk-taking channel of monetary policy corresponds to the view that interest rate policy affects the quality and not just the quantity of bank credit. From a financial stability perspective one concern is that a protracted period of low interest rates and monetary stimulus could contribute to an increase in financial risk-taking (Rajan 2010 Farhi and Tirole 2012 Acharya Pagano and Volpin 2013 Chodorow-Reich 2014). Concerns about the risk-taking effects of monetary policy have motivated a lively debate about the extent to which financial stability considerations should be an integral part of the monetary policy framework (Woodford 2012 Stein 2014).
Keywords
TASAS DE INTERÉS, PRÉSTAMOS BANCARIOS, CRISIS FINANCIERA