Abstract
We analyze the presence of bank risk taking associated with unconventional monetary policy in the United States between 2008 and 2015 using corporate syndicated loan data at the bank-firm level. We measure monetary policy using the identification-through-heteroskedasticity approach with a VAR model. To identify the risk-taking channel we control for time-varying heterogeneity in credit demand and supply. Our results indicate that accommodating monetary conditions are associated with overall lower loan spreads. However, the spread reduction is lower for riskier firms, suggesting that there is no risk taking behavior in the syndicated loan market during the UMP period.
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