This paper examines the asymmetric effects of monetary policy on output and the role of bank-lending behavior. We investigate whether contractionary and expansionary policies have asymmetric impacts on bank loans, and whether there are further differences in the response of small banks and big banks to policy actions. We also investigate the link between changes in bank lending and aggregate ec...

Article history: Received 13 October 2011 Accepted 26 December 2011 Available online 3 January 2012 This paper examines the determinants of the signaling effect of acquiring lines of credit (LCs) on borrower stock returns by testing the economic conditions and lending competitionhypotheses. The economic conditions hypothesis is tested by examining the loan cyclicality and handpicking effects. T...

Using loan-level data from Mexico, we study the relationship between the organizational structure of banks and the terms of lending to small businesses. We find that banks with decentralized lending structures – where branch managers have autonomy over the terms of lending – give larger loans to small firms and those with more "soft information". However, decentralized banks are also more respo...

In this study, we analyze the trading behavior of banks with lending relationships. We combine detailed German data on banks' proprietary and market making information from credit register then examine how trade stocks their borrowers around important corporate events. find that more frequently also profitably ahead events when they are main lender (or relationship bank) for borrower. Specifica...

When bankers speak of building a relationship with a business customer these days, they usually mean selling the customer a whole range of financial products such as lock-boxes, letters of credit, and swaps, in addition to loans. When financial economists speak of relationship lending between banks and firms, they usually have a different, more old-fashioned idea in mind. They mean a close rela...