Competition,financial innovation and commercial bank loan portfolios |
| |
| Institution: | 1. Research Department, Financial Stability Wing, Norges Bank (Central Bank of Norway), Bankplassen 2, P.O. Box 1179 Sentrum, 0107 Oslo, Norway;2. Market Infrastructure Division, Financial Stability, Bank of England, Threadneedle Street, London EC2R 8AH, United Kingdom;1. Federal Reserve Board, 20th and C streets, Washington, DC 20551, United States;2. Federal Reserve Bank of San Francisco, 101 Market street, San Francisco, CA 94105, United States;1. School of Accounting and Collaborative Innovation Center for Accounting Function Extension and National Governance Capacity Improvement, Southwestern University of Finance and Economics, Chengdu, China;2. School of Accounting, Southwestern University of Finance and Economics, Chengdu, China;3. Gordon Ford College of Business, Western Kentucky University, Bowling Green, KY 42101, USA |
| |
| Abstract: | I examine how US commercial bank loan portfolios change in response to the rise of securitization markets and banking market deregulations over 1976–2003. Banks increasingly tilt their portfolios toward real-estate-backed loans. However, there are significant differences across banks. Larger banks and younger banks disproportionately shift their lending toward real-estate-backed loans, particularly commercial real-estate-backed loans, whereas smaller banks and older banks maintain greater shares of their loan portfolios in commercial and personal loans. When larger banks make more real-estate-backed loans, they charge lower interest rates, consistent with these banks lowering the costs of lending and expanding credit for borrowers. In contrast, smaller banks charge higher interest rates, consistent with these banks restricting lending to a select group of borrowers. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
