industry in the mid 1980s. This deregulation eliminated government interference in bank lending decisions and allowed French … performing firms and that these firms experience a steeper increase in the cost of capital. Subsequently, firms in the more bank … in asset and job reallocation in the bank dependent sectors, mostly due to higher entry and exit rates of firms. We also …

behavior following monetary policy shocks. In a first step, we show that the sensitivity of bank profits to interest rates … income gap also predicts the sensitivity of bank lending to interest rates, both for commercial & industrial loans and for … mortgages. Quantitatively, a 100 basis point increase in the Fed funds rate leads a bank at the 75th percentile of the income …