The 1998 passage of the Land Revaluation Law in Japan provided regulatory forbearance to the Japanese banks in the form of a regulatory capital infusion. We test whether this divergence from international bank capital requirements had an impact on Japanese bank lending behavior. Because this...

Does increased international liquidity, the saving glut explain the recent deterioration of US current account balances? In this paper, we develop a simple, two country real business cycle model to answer this question. The salient feature of our model is that lending by one country is...

In contrast to the literature involving U.S. bank lending domestically to U.S. firms, we find that affiliated U.S. banks' mutual funds do not increase their holdings of equity in non-U.S. borrowing firms around new loan initiations. Mutual funds affiliated with lending banks have less equity...