... leverage, and deposit rates on bank risk taking Several papers (e.g., Matutes and Vives, 2000, Hellmann, Murdoch, and Stiglitz, 2000, Cordella and Levy-Yeyati, 2000, Repullo, 2004, and Boyd and ... relationship between monetary conditions and leverage, and the tendency for banks to load up on risk during extended periods of loose monetary policy While our treatment of monetary policy is obviously ... links monetary policy and bank risk taking For example, Lown and Morgan (2006) show that credit standards in the U.S tend to tighten following a monetary contraction Similarly, Maddaloni and Peydró...