Through the lens of credit risk ratings, we investigate how banks determine loan terms under capital constraints. Using … adjustments to banks' internal rating systems, which only alter how outsiders assess the riskiness of borrowers, trigger changes … effects to be strong for smaller, riskier, and capital constrained banks as well as for borrowers with poorer credit quality …

This paper focuses on the recent changes in banking systems and how bank-specific characteristics have affected credit …-analysis techniques to summarise the results. We find that large and well-capitalised banks with low risk indicators, stable sources of … funding, and a commercial business model generally supply more credit. Such banks are also more sheltered from monetary and …