Did U.S. Bank Supervisors Get Tougher During the Credit Crunch? Did They Get Easier During the Banking Boom? Did It Matter to Bank Lending?
Year: 2000
Type: report
Abstract: We test three hypotheses regarding changes in supervisory "toughness" and their effects on bank lending.The data provide modest support for all three hypotheses -that there was an increase in toughness during the credit crunch period (1989)(1990)(1991)(1992), that there was a decline in toughness during the boom period (1993)(1994)(1995)(1996)(1997)(1998), and that changes in toughness, if they occurred, affected bank lending.However, all of the measured effects are small, with 1% or less of loans receiving harsher or easier classification, about 3% of banks receiving better or worse CAMEL ratings, and bank lending being changed by 1% or less of assets.
DOI: 10.3386/w7689
Authors: Allen Berger, Margaret Kyle, Joseph Scalise
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2139800344