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Bank risk-taking, securitization, supervision and low interest rates: Evidence from the euro area and the U.S. lending standards

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  • Maddaloni, Angela
  • Peydró, José-Luis

Abstract

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short-term interest rates soften standards, for household and corporate loans. This softening JEL Classification: G01, G21, G28, E44, E5

Suggested Citation

  • Maddaloni, Angela & Peydró, José-Luis, 2010. "Bank risk-taking, securitization, supervision and low interest rates: Evidence from the euro area and the U.S. lending standards," Working Paper Series 1248, European Central Bank.
  • Handle: RePEc:ecb:ecbwps:20101248
    Note: 282957
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    More about this item

    Keywords

    bank capital; Financial Stability; Lending standards; monetary policy; securitization;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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