Conventional wisdom in banking argues that diversification tends to reduce bank risk and improve performance, but the … to benefit more from being diversified. This analysis provides important strategic and policy implications for bank …

may have increased during the crisis due to heightened awareness of the risks of bank failures. To address these issues …

We test three hypotheses regarding changes in supervisory toughness' and their effects on bank lending. The data …, affected bank lending. However, all of the measured effects are small, with 1% or less of loans receiving harsher or easier … classification, about 3% of banks receiving better or worse CAMEL ratings, and bank lending being changed by 1% or less of assets …

, comprehensive measures of bank liquidity creation do not exist. We construct four measures and apply them to data on virtually all U ….S. banks from 1993 to 2003. We find that bank liquidity creation increased every year and exceeded $2.8 trillion in 2003. Large … banks, multibank holding company members, retail banks, and recently merged banks created the most liquidity. Bank liquidity …

lending function are examined, and a simple model of bank-lending is proposed. The model is used to examine the impact of … business, including technical innovationssuch as credit scoring, regulatory regime shifts such as toughened bank supervision … firm, owner and community; and (3) an agency problem appears between the loan officer and bank management because of the …

the hypotheses concerning bank size, and the willingness to accept hard or soft information. To test these hypotheses …, data were collected from the Federal Reserve’s 1993 National Survey of Small Business Finance.Bank and market …

Explores the role of bank-borrower relationships in small firm finance. Focus is on the availability and terms of lines … for older firms who have had long relationships with the bank. Overall, the analysis shows that the longer the … proposition that bank-borrower relationships provide important information about borrower quality. (SRD) …