01714cas a2200253 a 4500 AALejournalIMF018513 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484361610 1018-5941 BD-DhAAL BD-DhAAL Hong, Gee Hee. Pushed Past the Limit? : How Japanese Banks Reacted to Negative Interest Rates / Gee Hee Hong, John Kandrac. Washington, D.C. : International Monetary Fund, 2018. 1 online resource (50 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In this paper, we investigate how negative interest rate policy (NIRP) introduced in January 2016 by the Bank of Japan (BoJ) affected Japanese banks' lending and risk taking behavior. The BoJ's announcement was an unexpected surprise to the market and was followed by a sharp drop in equity prices of Japanese financial firms. We exploit the cross-sectional variation in the change of share prices on the day of the announcement to measure banks' differential exposure to NIRP. We show that more exposed banks increased their credit and took on more risk compared to banks that were less exposed to negative rates. Mode of access: Internet Kandrac, John. IMF Working Papers; Working Paper ; No. 2018/131 Full text available on IMF http://elibrary.imf.org/view/journals/001/2018/131/001.2018.issue-131-en.xml IMF e-Library