costly equity and may either decrease loans or charge higher cost on bank credit. We argue that cost efficiency can help … banks to accumulate capital through profits, while at the same time, enable them to charge lower cost on bank credit … efficiency has a positive impact on bank capital formation and a negative effect on the cost of bank credit. We further observe …

restrictive bank loan supply shock has a strong and persistent negative impact on real GDP and the GDP deflator. This result comes … "spare tire" for the reduction in bank loans. We show that this result can be rationalized by a recently revived view of … the act of lending. Consequently, our findings indicate that a substitution of bank loans by other sources of financing …

-term accounting-based compensation plans (LTAPs) to CEOs, firms pay lower spreads and have fewer restrictive covenants in new bank …'s credit rating improves and CDS spread declines after LTAP grants, suggesting that LTAPs help reduce firms' credit risk …