Banks’ exposure to interest rate risk and the transmission of monetary policy

© 2020 Elsevier B.V. The cash-flow exposure of banks to interest rate risk, or income gap, is a significant determinant of the transmission of monetary policy to bank lending and real activity. When the Fed Funds rate rises, banks with a larger income gap generate stronger earnings and contract thei...

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Bibliographic Details
Main Authors: Gomez, Matthieu, Landier, Augustin, Sraer, David, Thesmar, David
Other Authors: Sloan School of Management
Format: Article
Language:English
Published: Elsevier BV 2021
Online Access:https://hdl.handle.net/1721.1/133965