This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that … treating the lending and deposit rates of interest as distinct parameters in investment equations. The spread between the two …

This paper (i) provides evidence on the procyclical investment behavior of major institutional investors during the … implications of procyclical behavior; and (iv) proposes a framework for sound investment practices for long-term investors. Such … procyclical investment behavior is understandable and may be considered rational from an individual institution’s perspective …