“…Authors posit that by mitigating information asymmetries and lowering bank risk, a low interest rate environment can induce credit expansion and increased risk-taking (Borio & Zhu, 2008;Dell'Ariccia & Marquez, 2006;Maddaloni & Peydró, 2010;Rajan, 2006). Empirical research shows that low interest rate levels indeed increase bank risk-taking substantially (Altunbas, Gambacorta, & Marqués-Ibáñez, 2010;Delis & Kouretas, 2011;Ioannidou, Ongena, & Peydró, 2009;Jiménez, Salas, Ongena, & Peydró, 2007). 3 Many banks moved from a relationship-oriented model (ROM) towards a transactions-oriented model (TOM) of financial intermediation.…”