This research presents a pioneering contribution to the literature on the transmission mechanism of monetary policy through the credit channel and the risk-taking channel, since it analyzes the influence of monetary policies on the insurance hiring process by banks in order to protect them against losses in lending transactions to individuals and, also, investigates the impact ofcontracting this type ofinsurance on credit spread in Brazil. The results indicate that: i) monetary policies influence the credit insurance premium; and ii) there exists a positive relationship between the insurance premium and the spread, suggestingthat the credit spread is sensitive to the amount of insurance paid by financial institutions.
