A new Bundesbank study 2 looks at this risk-taking channel and shows, like work by other economists, 3, 4 that it can indeed make sense to pursue a somewhat less accommodative monetary policy. For such an approach, according to the analysis, dampens banks’ tendency to take excessive risks.
2  Angela Abbate & Dominik Thaler (2015), “Monetary policy and the asset risk-taking channel”, Deutsche Bundesbank Discussion Paper 48/2015. 3  DellʼAriccia, Giovanni & Laeven, Luc & Marquez, Robert (2014), “Real interest rates, leverage, and bank risktaking”, Journal of Economic Theory, Elsevier, Vol 149(C), pages 65–99.