Economic sectors and the monetary policy risk-taking channel
- Martha López Piñeros,
Monetary policy, credit risk, credit supply, bank capital, financial stability
This document contributes to the empirical literature on the risk-taking channel of monetary policy and widens its range of analysis in terms of studying which economic sectors are most vulnerable to it. We used microdata at the credit level for 3,019 Colombian firms in the period 2005: 1 and 2014: 3. Our results show strong evidence of the channel for the economy as a whole and more important effects in the agriculture and services sectors for firms that are risky ex ante. These results are also supported for ex post credit risk. The firms that are most affected are the least profitable and the least leveraged.