Economic Sectors and the Risk-taking Channel of Monetary Policy

Authors

  • Martha López Piñeros Banco de la Republica

DOI:

https://doi.org/10.32826/cude.v43i123.135

Keywords:

Monetary policy, credit risk, supply of credit, bank capital, financial stability

Abstract

This paper contributes to the empirical literature of the risk-taking channel of monetary policy and enhance the range of the analysis in terms of studying which economic sectors are more vulnerable to it. We use loan level microdata for 3019 Colombian firms between 2005:1 and 2014:3. Our results show strong evidence of the channel for the economy as a whole and a stronger effect in the agriculture and services sectors for ex-ante risky firms.  These results are supported also for ex post credit risk.  The   firms affected the most are the less profitable and the less leveraged.

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Published

2020-06-19

Issue

Vol. 43 No. 123 (2020): Pages 243-381 (September - December 2020)

Section

Articles

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