This paper empirically investigates the effect of bank capital ratios on loan spreads using a dataset of all syndicated loans issued by public non-financial U.S. firms during the 1993 to 2007 period. We find evidence that banks with high capital ratios charge higher spreads. We further...

In this paper, we seek empirical evidence for information rents in loan spreads by analyzing a sample of UK syndicated loan contracts for the period from 1996 to 2005. We use various measures for borrower opaqueness and control for bank, borrower and loan characteristics and we find that...