“…Low short‐term interest rates prior to loan issuance result in banks granting more new risky loan portfolios, distorting their credit supply to favour borrowers with worse credit histories, lower ex‐ante internal ratings, and weaker ex‐post performance (Ioannidou, Ongena, & Peydró, ; Jiménez, Ongena, Peydró, & Saurina, ). Less return from yields is another motive for financial institutions to accelerate their risk‐taking activities (Chodorow‐Reich, ; Rajan, ). Banking surveys based on credit standards in the US and the UK, on the contrary, do not suggest an excessive risk‐taking by banks as a result of the enforcement of quantitative easing (Claeys & Darvas, ).…”