Krishnan, Karthik - In: Journal of Economics and Business 66 (2013) C, pp. 47-75
I investigate how commercial banks can use lending to attract underwriting business from loan clients. My empirical … business (i.e., coercive tying), banks use more credit and lower spreads as incentives for firms to give them future … underwriting business. Further, banks that continue business relations by lending again to firms are rewarded with a higher …