Gomez, Matthieu; Landier, Augustin; Sraer, David; … - 2016
policy shocks to bank lending and real activity. We first use a large panel of U.S. banks to show that the sensitivity of … bank profits to interest rates increases significantly with measured income gap, even when banks use interest rate … derivatives. We then document that, in the cross-section of banks, income gap predicts the sensitivity of bank lending to interest …