What does peer-to-peer lending evidence say about the Risk-Taking Channel of monetary policy?

This paper uses loan application-level data from a peer-to-peer lending platform to study the risk-taking channel of monetary policy. By employing direct ex-ante measure and estimating simultaneous equations approval amount, we provide evidence policy's impact on nonbank financial institution's risk-taking. We find that search-for-yield is main driving force effect, while do not observe consistent findings risk-shifting liquidity change. Monetary policy easing associated with higher probability granting loans risky borrowers greater riskiness credit allocation. However, these changes necessarily relate larger amount average.