SUERF Policy Brief

The Fed Put and Bank Risk-Taking: Evidence from the Loan Book

This paper shows that monetary policy changes the risk composition of bank lending by altering the perceived tail risk of bank equity: when FOMC announcements compress the likelihood of costly low-equity states, banks originate riskier commercial and industrial loans. We measure bank-specific tail-risk shocks using equ...

Bank Liquidity, Interbank Markets

Supervisory Stringency, Payout Restrictions, and Bank Equity Prices

Bonding Through Crises with NBFIs

We study how banking crises reshape nonbank financial institutions’ (NBFIs) role in corporate debt markets using primary-market syndicated loans and corporate bonds over 1990–2025. We find that NBFI cyclicality is function-specific: NBFIs contract syndicated loans relative to banks but expand corporate bond underwritin...

BIS Working Papers No 1051 How capital inflows translate into new bank lending: tracing the mechanism in Latin America

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