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The Banking Risk-Taking Channel of Monetary Policy in South Africa

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Bank Credit Extension and Real Economic Activity in South Africa

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Notes

  1. 1.

    Specifically, the view is that interest rates were held low for too long in the run-up to the recent financial crisis and that this helped to fuel an asset price boom, spurring financial intermediaries to increase leverage and take on excessive risks. More recently, a related debate has ensued on whether continued expectations of exceptionally low interest rates are setting the stage for the next financial crisis. See, Rajan (2010), Farhi and Tirole (2012), Borio and Zhu (2008), Adrian and Shin (2009), Taylor (2009), Giovanni et al. (2013), amongst others.

  2. 2.

    Credit lending standards as a proxy for lending risk and perceptions of borrowers’ risk are not used due to the short sample available for the times series.

  3. 3.

    See Altunbas et al. (2014).

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Authors and Affiliations

  1. Economist, South African Reserve Bank, Johannesburg, South Africa

    Nombulelo Gumata & Eliphas Ndou

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  1. Nombulelo Gumata
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  2. Eliphas Ndou
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Gumata, N., Ndou, E. (2017). The Banking Risk-Taking Channel of Monetary Policy in South Africa. In: Bank Credit Extension and Real Economic Activity in South Africa. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-43551-0_15

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  • DOI: https://doi.org/10.1007/978-3-319-43551-0_15

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