AbstractThis paper tests the hypothesis that low interest rates are likely to exacerbate banks’ risk-taking behavior by examining approximately 6000 annual observations in the United States over the period of 2001-2015 I find mixed results Inconsistent with this hypothesis I find that banks’ risk assets rise with short-term rate long-term rate and central bank rate However I find opposite results when I measure the level of banks’ risk-taking by non-performing loans In addition I find that heterogeneous risk-taking behavior is likely to result from differential bank characteristics Specifically less efficient banks tend to take on higher risk than more efficient counterparts
|Date of Award||2016 Jun 15|
|Supervisor||Ping-Hsun Huang (Supervisor)|
Do banks take excessive risks?
毓文, 張. (Author). 2016 Jun 15
Student thesis: Master's Thesis