Real Interest Rates, Bank Borrowing, and Fragility
研究实际利率如何影响银行脆弱性，通过一个银行借款面临展期风险的模型，发现利率变化对脆弱性的边际影响取决于利率水平，并给出可检验的推论。
Abstract How do real interest rates affect financial fragility? We study this issue in a model where bank borrowing is subject to rollover risk. A bank's optimal borrowing trades off the benefit from investing additional funds into profitable assets with the cost of greater risk of a run by creditors. Changes in the interest rate affect the price and amount of borrowing, which influence bank fragility in opposite directions. Thus, the marginal impact of changes to the interest rate on bank fragility depends on the level of the interest rate. Finally, we derive testable implications that may guide future empirical work.