We study how supervisory coverage affects syndicated lending. Relying on an unexpected change in supervisory coverage, we document that the costs of bank credit for borrowers excluded from supervision decrease by approximately 18% relative to an otherwise similar control group. We also find that...

We use quasi-random variation in federal loan examiner assignments -- affecting examiner leniency and supervisory ratings -- to test how bank supervision affects corporate lending. Following a supervisory rating downgrade, lead banks lower their internal risk assessments, decrease loan...

We directly measure banks' monitoring of syndicated loans. Banks typically demand borrower information on at least a monthly basis. About 20% of loans involve active monitoring (i.e., site visits or third-party appraisals). Monitoring increases with the lead bank's incentives and the value of...