We explore how an accounting measure of information asymmetry between lead and participating lenders influences syndication structures by examining whether lead lenders' commercial and industrial (C&I) loan loss provision validity affects the fraction of loans they retain. Consistent with C&I...

Based on a linear provision/charge-off association and V-shaped scatter-plots of these variables against nonperforming loan changes, Basu et al. (2020) argue that nonperforming loan changes mis-measure credit quality and linear provision models are mis-specified. They conclude that residual...

Banks with low regulatory capital facing external-financing frictions may reduce lending to avoid a capital shortage. The capital crunch theory predicts that banks' lending is particularly sensitive to their capital ratios during recessions. Procyclicality in bank lending may be magnified when...