Berlin, Mitchell; Mester, Loretta J. - Federal Reserve Bank of Philadelphia - 1997
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 …