Financial intermediaries and risk taking in the low interest rate environment: Focusing on individual and regional differences

2014 Fiscal Year Final Research Report

• Project/Area Number: 24730270
• Research Category: Grant-in-Aid for Young Scientists (B)
• Allocation Type: Multi-year Fund
• Research Field: Public finance/Monetary economics
• Research Institution: Sapporo Gakuin University
• Principal Investigator: INOUE Hitoshi 札幌学院大学, 経済学部, 准教授 (10545057)
• Project Period (FY): 2012-04-01 – 2015-03-31
• Keywords: 銀行 / リスクテイク / 貸出 / 自己資本比率 / 不良債権比率

Outline of Final Research Achievements

This project empirically revealed that the financial intermediaries’ risk taking behavior in the low interest rate environment. Focusing on bank lending among their risk taking behavior, we found that banks whose capital was not enough avoided taking a risk, while banks had a high percentage of non-performing loans kept taking risks by lending further between late 1990s and early 2000s. The banks had a high percentage of non-performing loans also kept taking risks in middle 2000s. Banks in rural areas was likely to take risks than ones in urban areas.

Free Research Field

金融論