05065oam 22012974 450 991016294370332120230810001917.01-4755-6974-21-4755-6977-7(CKB)3710000001045037(MiAaPQ)EBC4800272(IMF)WPIEA2017003(EXLCZ)99371000000104503720020129d2017 uf 0engurcnu||||||||rdacontentrdamediardacarrierWhy Do Bank-Dependent Firms Bear Interest-Rate Risk? /Divya KirtiWashington, D.C. :International Monetary Fund,2017.1 online resource (57 pages) illustrations, tables, graphsIMF Working Papers1-4755-6897-5 Includes bibliographical references.I document that floating-rate loans from banks (particularly important for bank-dependent firms) drive most variation in firms' exposure to interest rates. I argue that banks lend to firms at floating rates because they themselves have floating-rate liabilities, supporting this with three key findings. Banks with more floating-rate liabilities, first, make more floating-rate loans, second, hold more floating-rate securities, and third, quote lower prices for floating-rate loans. My results establish an important link between intermediaries' funding structure and the types of contracts used by non-financial firms. They also highlight a role for banks in the balance-sheet channel of monetary policy.IMF Working Papers; Working Paper ;No. 2017/003Interest rate riskCorporationsFinanceBanks and BankingimfInvestments: GeneralimfMoney and Monetary PolicyimfIndustries: Financial ServicesimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancing PolicyimfFinancial Risk and Risk ManagementimfCapital and Ownership StructureimfValue of FirmsimfGoodwillimfFinancial Markets and the MacroeconomyimfMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralimfGeneral Financial Markets: General (includes Measurement and Data)imfInterest Rates: Determination, Term Structure, and EffectsimfBankingimfFinanceimfMonetary economicsimfInvestment & securitiesimfFinancial services law & regulationimfLoansimfBank creditimfSecuritiesimfShort term interest ratesimfFinancial institutionsimfMoneyimfFinancial servicesimfHedgingimfFinancial regulation and supervisionimfBanks and bankingimfCreditimfFinancial instrumentsimfInterest ratesimfFinancial risk managementimfUnited StatesimfInterest rate risk.CorporationsFinance.Banks and BankingInvestments: GeneralMoney and Monetary PolicyIndustries: Financial ServicesBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancing PolicyFinancial Risk and Risk ManagementCapital and Ownership StructureValue of FirmsGoodwillFinancial Markets and the MacroeconomyMonetary Policy, Central Banking, and the Supply of Money and Credit: GeneralGeneral Financial Markets: General (includes Measurement and Data)Interest Rates: Determination, Term Structure, and EffectsBankingFinanceMonetary economicsInvestment & securitiesFinancial services law & regulationLoansBank creditSecuritiesShort term interest ratesFinancial institutionsMoneyFinancial servicesHedgingFinancial regulation and supervisionBanks and bankingCreditFinancial instrumentsInterest ratesFinancial risk management332.10681Kirti Divya1379708DcWaIMFBOOK9910162943703321Why do bank-dependent firms bear interest-rate risk3419965UNINA