The authors present a theoretical model in which a profit-maximizing lender may ration credit to businesses by … restricting loan size. Such credit rationing occurs despite the absence of differences across borrowers in default risk or loan …

Bank credit, the sum of loans and securities at commercial banks, is widely viewed as providing information about the … current and future state of the economy. Analysts have been concerned about the behavior of bank credit during the nation … development some analysts view as a sign the economy is growing too fast to keep inflationary pressures in check.> Bank credit …

commercial banks has been due in large part to excessively easy credit standards. Some analysts argue that competition for loan … customers has greatly increased, causing banks to reduce loan rates and ease credit standards to obtain new business. Others …; nor should it be accepted without question. If loan growth increases because banks become more willing to lend, credit …

lending or credit channel exists, changes in the willingness and ability of banks to extend credit may have implications for … the economy. Moreover, ongoing changes in the role of banks in financial markets may affect the credit channel and so … alter the monetary transmission mechanism.> Recent research on a bank credit channel has focused on two questions. Are …