more lax lending policies than banks, we unveil important evidence that nonbanks increased bank borrowing following the … lending. We find that the guidance primarily impacted large, closely supervised banks, but only after supervisors issued … issuance of guidance, possibly to finance their growing leveraged lending. The guidance was effective at reducing banks …

between these vehicles and lead banks. CLOs that have a relationship with the lead bank of the renegotiated loan are strong … findings highlight the previously unrecognized role of the growing presence of non-bank lenders in corporate lending. …We document that the structure of syndicates affects loan renegotiations. Lead banks with large retained shares have …

The Basel I Accord introduced a discontinuity in required capital for undrawn credit commitments. While banks had to … of bank regulatory capital. Our results show that following Basel I, undrawn fees and all-in-drawn credit spreads on …, both undrawn fees and spreads went up. These results are robust and confirm that banks act to conserve regulatory capital …

capitalize on a new measure to study the extent to which banks’ loan portfolios are exposed to specific climate transition … policies. The results show that while banks’ exposures are meaningful, they are manageable.To view post: https …://libertystreeteconomics.newyorkfed.org/2023/07/how-exposed-are-u-s-banks-loan-portfolios-to-climate-transition-risks …

This paper empirically explores the monitoring behavior of banks. We are able to infer bank monitoring activity by … better understand the bank monitoring motives and abilities. We find banks more closely monitor those credits to which they … are most exposed. In contrast, we do not detect that syndicate agents monitor more than other banks. Banks with a larger …