Bank Risk-taking in Connection with Interest Rates



Year of publication 2016
Type Article in Proceedings
Conference Proceedings of the 3rd International Multidisciplinary Scientific Conference Social Sciences & Arts SGEM 2016, Book 2, Volume 3
MU Faculty or unit

Faculty of Economics and Administration

Web SGEM International Multidisciplinary Scientific Conferences on Social Sciences and Arts
Field Economy
Keywords interest rate; risk-taking; banking industry; non-performing loan; profitability
Description The gradual decrease of interest rates is noticed from the beginning of 2000 to the present. It caused that the risk-taking appetite of banks increased and banks have softened their lending standards. We examine the impact of interest rates on bank risk-taking and on the profitability of banks in this paper. The research is applied on four biggest banks in the Czech Republic and their sister companies operating in a country where the whole group of financial institutions is established. We compare the results and answer following questions. Do low interest rates increase risk-taking appetite of banks in Czech Republic equally as of their sister companies? How Czech banks faces to low interest rates in connection with profitability comparing to their sister companies?
Related projects:

You are running an old browser version. We recommend updating your browser to its latest version.