Kashian, Russell D.; Tao, Ran - In: Journal of Economic Studies 41 (2014) 6, pp. 789-807
Purpose – The purpose of this paper is to examine loan commitments and lending patterns of community banks. The authors … use of loan commitments is generally associated with moderate increase in profitability and higher insolvency risk …. However, during the recent financial crisis, the use of loan commitments becomes safer. The use of loan commitments is more …