Ioannidou, VassoOngena, StevenPeydró, José-LuisUniversitat Pompeu Fabra. Departament d'Economia i Empresa2024-11-142024-11-142007-09-01Review of Finance, 19(1), 2015, 95-144http://hdl.handle.net/10230/44687We study the risk-taking channel of monetary policy in Bolivia, a dollarized country where monetary changes are transmitted exogenously from the US. We find that a lower policy rate spurs the granting of riskier loans, to borrowers with worse credit histories, lower ex-ante internal ratings, and weaker ex-post performance (acutely so when the rate subsequently increases). Effects are stronger for small firms borrowing from multiple banks. To uniquely identify risk-taking we assess collateral coverage, expected returns and risk premia of the newly-granted riskier loans, finding that their returns and premia are actually lower, especially at banks suffering from agency problems.application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsMonetary policy, risk-taking and pricing: Evidence from a quasi-natural experiment<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">monetary policy</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">low short-term interest rates</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">softening lending standards</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">credit risk</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">liquidity risk</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">subprime borrowers</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">bank agency problems</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">duration analysis.</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Finance and Accounting</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>