Our study investigates the link between bank lending behavior and macroeconomic uncertainty. We develop a dynamic model … of a bank's value maximization that results in a negative relationship between loan to capital ratio and macroeconomic … uncertainty. This proposition is tested using a panel of Ukrainian banks collected from NBU and covering the period 2003q1-2005q3 …

lending ratio in times of substantial economic volatility, which could be explained by higher risk aversion of bank managers …This study investigates the link between bank lending behavior and country-level instability. Our dynamic model of bank …'s profit maximization predicts a non-monotonic relationship between bank lending and macroeconomic uncertainty. We test this …

We document that banks reduce supply of jumbo mortgage loans when policy uncertainty increases in their headquarter … effects; (ii) banks reduce lending not just in their home states but also outside their home states when their home states … hold elections; (iii) we observe important cross-sectional differences in the way banks with different characteristics …

We show that banks reduce the supply of jumbo mortgage loans when policy uncertainty increases, as measured by the … timing of US gubernatorial elections in banks' headquarter states. We use high-frequency, geographically granular loan …-in-difference specification and for state/time (quarter) fixed effects; (2) we observe banks reduce lending not just in their home states but also …

increase in average interest rates on bank gross loans. We conjecture the economic policy uncertainty boosts banks' loan prices … by increasing the borrowers' default risk. The impact of EPU on banks' loan pricing remains persistent after controlling … for banks' own idiosyncratic default risk and the political risk variables from ICRG database. Results remain robust when …