This paper empirically investigates banks’ investment allocations over the recent business cycle. I identify … unsolicited deposit shocks resulting from unconventional energy development and estimate bank allocations of these deposits. In … the pre-recession period, banks lend 38 percent of incremental deposits; however, during the downturn, banks favor liquid …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … estimate bank biases at the credit level by comparing bank-generated risk estimates within loan syndicates. The biases are … positively correlated with measures of regulatory capital, even in the presence of bank fixed effects, consistent with an effort …

mechanisms for shadow banking that have been documented in the literature. I then illustrate the role of shadow bank policies …