relationship is primarily present in the expansionary stages of the credit cycle. This suggests that a firm's current bank lender … applicants. The finding that this primarily occurs in credit cycle expansions is consistent with theory models that predict that … banks reduce screening of new borrowers in these periods, leading to lower average credit quality of bank borrowers when …

relationship is primarily present in the expansionary stages of the credit cycle. This suggests that a fi rm's current bank lender … applicants. The fi nding that this primarily occurs in credit cycle expansions is consistent with theory models that predict that … banks reduce screening of new borrowers in these periods, leading to lower average credit quality of bank borrowers when …