The Risk-Taking Channel in Colombia Revisited
Levels of interest rates below historical norms may have enhanced financial instability in developed and developing economies during the 2000's. The risk taking channel of monetary policy transmission is a recent theory that explains the interaction between risk perceptions of the financial system and monetary policy. This paper presents empirical evidence of the risk taking channel of monetary policy using detailed information on consumer and commercial loans from the Colombian banking system. Using probit and duration models we find that the banking system takes on more risk when the level of interest rates are too low. We also find that the response to interest rates is higher in the case of commercial loans.
|Date of creation:||07 Feb 2012|
|Date of revision:|
|Contact details of provider:|| |
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Piti Disyatat, 2010.
"The bank lending channel revisited,"
BIS Working Papers
297, Bank for International Settlements.
- Martha López & Fernando Tenjo & Héctor Zárate, 2011.
"The Risk-Taking Channel and Monetary Transmission Mechanism in Colombia,"
ENSAYOS SOBRE POLÍTICA ECONÓMICA,
BANCO DE LA REPÚBLICA - ESPE, vol. 29(64), pages 211-234, July.
- Martha López & Fernando Tenjo & Héctor Zárate, 2011. "The Risk-Taking Channel and Monetary Transmission Mechanism in Colombia," Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 29(64), pages 211-234.
- Martha López P. & Fernando Tenjo G. & Héctor Zárate Solano, . "The Risk-Taking Channel and Monetary Transmission Mechanism in Colombia," Borradores de Economia 616, Banco de la Republica de Colombia.
- Douglas W. Diamond & Raghuram G. Rajan, 2003.
"Money in a Theory of Banking,"
NBER Working Papers
10070, National Bureau of Economic Research, Inc.
- Gabriel Jiménez & Steven Ongena & José Luis Peydró & Jesús Saurina, 2009.
"Hazardous times for monetary policy: What do twenty-three million bank loans say about the effects of monetary policy on credit risk-taking?,"
0833, Banco de España;Working Papers Homepage.
- Gabriel Jiménez & Steven Ongena & José‐Luis Peydró & Jesús Saurina, 2014. "Hazardous Times for Monetary Policy: What Do Twenty‐Three Million Bank Loans Say About the Effects of Monetary Policy on Credit Risk‐Taking?," Econometrica, Econometric Society, vol. 82(2), pages 463-505, 03.
- Eliana González & Luis F. Melo & Luis E. Rojas & Brayan Rojas, .
"Estimations of the natural rate of interest in Colombia,"
Borradores de Economia
626, Banco de la Republica de Colombia.
- Eliana González & Luis F. Melo & Luis E. Rojas & Brayan Rojas, 2011. "Estimations of the Natural Rate of Interest in Colombia," Money Affairs, Centro de Estudios Monetarios Latinoamericanos, vol. 0(1), pages 33-75, January-J.
- Eliana González & Luis F. Melo & Luis E. Rojas & Brayan Rojas, 2010. "Estimations of the natural rate of interest in Colombia," BORRADORES DE ECONOMIA 007667, BANCO DE LA REPÚBLICA.
- Leonardo Gambacorta, 2009. "Monetary policy and the risk-taking channel," BIS Quarterly Review, Bank for International Settlements, December.
When requesting a correction, please mention this item's handle: RePEc:col:000094:009313. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Clorith Angélica Bahos Olivera)
If references are entirely missing, you can add them using this form.