We study the impact of increasingly negative central bank policy rates on banksâ propensity to become undercapitalized in a financial crisis (âSRiskâ). We find that the risk impact of negative rates depends on banksâ business models: Large banks with diversified income streams are perceived as less risky, while smaller and more traditional banks are perceived as more risky. Policy rate cuts below zero trigger different SRisk responses than an earlier cut to zero.
Titolo: | Do negative interest rates make banks less safe? |
Autori: | |
Data di pubblicazione: | 2017 |
Rivista: | |
Handle: | http://hdl.handle.net/11385/175223 |
Appare nelle tipologie: | 01.1 - Articolo su rivista (Article) |
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