monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

income gap. Secondly, we show that income gap also predicts the sensitivity of bank lending to interest rates. Quantitatively …, a 100 basis point increase in the Fed funds rate leads a bank at the 75th percentile of the income gap distribution to … increase lending by about 1.6 percentage points annually relative to a bank at the 25th percentile …

first examine the impact of economic policy uncertainty on aggregate bank credit growth. Then we analyze commercial bank … macroeconomic controls, economic policy uncertainty affected bank level credit growth, and (ii) whether there is variation in the … varies with bank level financial constraints, loan supply. We find that policy uncertainty has a significant negative effect …

The 'credit channel' theory of monetary policy transmission holds that informational frictions in credit markets worsen … of this mechanism, the balance-sheet channel and the bank lending channel. We argue that forecasting exercises using … credit aggregates are not valid tests of this theory …

We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … (BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank …

tradeoff between profiting from lending and incurring greater liquidity risk. We consider two applications of the theory, one … quantitative decomposition behind the collapse in bank lending during the 2008 financial crisis. Our analysis underscores the …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … underlie our structural model, we can quantify the impact capital regulation and other government interventions have on bank …