Peek and Rosengren (American Economic Review 2005; 95) suggested the mechanism of ``unnatural selection,'' where low-capitalized Japanese banks increase credit to low-quality firms because of their motivation to pursue balance sheet cosmetics. In this study, we replicate their estimation results,...

I examine the effect of bank loan supply shocks, using bank lending stance shocks derived from the industry-level Short-term Economic Survey of Enterprises (Tankan) survey data in Japan. The identified bank lending stance shocks enable us to investigate the effect of loan supply shocks on the...

We investigate the effects of unconventional monetary policy on bank lending, using a bank-firm loan-level matched dataset from 1999 to 2015 by extracting exogenous changes in unconventional monetary policies over the past 20 years in Japan. We find that an increase in the share of...