Bank funding and risk taking
Ferrari, Alessandro
Garcia Galindo, Carmen
Petricek, Matic
Winkler, Andreas

Fecha: 2018
Resumen: In this paper we use a novel approach to address issues of endogeneity in estimating a causal effect of leverage on risk taking by banks. Using data on local bank office deposits and local unemployment we construct an instrument to use in a regression of leverage on a measure of risk taking constructed from new issuance of loans. The results (i. ) confirm that due to limited liability banks increase their risk taking after an exogenous increase in leverage, and (ii. ) that an increase in deposit supply has a direct positive effect on risk taking by banks.
Resumen: The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396.
Nota: Número d'acord de subvenció EC/H2020/649396
Derechos: Creative Commons
Lengua: Anglès.
Colección: Barcelona Graduate School of Economics: ADEMU working paper series
Colección: ADEMU Working Paper Series ; 123
Documento: workingPaper

Adreça alternativa:

28 p, 526.8 KB

El registro aparece en las colecciones:
Documentos de investigación > Working papers

 Registro creado el 2018-10-23, última modificación el 2018-12-22

   Favorit i Compartir