against exogenous credit shocks. Using a large sample of loans from the Survey of the Terms of Bank Lending, the authors find … more smoothing of loan rates in response to exogenous changes in aggregate credit risk. This suggests that a distinctive … period by period. It also partially explains the declining share of bank loans (or near substitutes for bank loans) in credit …

against exogenous credit shocks. The authors find that, controlling for competitive conditions in loan markets, banks funded … more heavily with core deposits provide more smoothing of loan rates in response to exogenous changes in aggregate credit … near substitutes for bank loans) in credit markets. As banks have increasingly been forced to pay market rates for an …