Discussion Paper

Drivers of Bank Supply of Business Loans


Abstract: Numerous studies show that tightening loan supply may significantly affect credit outcomes, including declines in total lending capacity and changes in loan terms (see for example, Bassett et al. (2014), Castro et al. (2022), Lown and Morgan (2006)). Moreover, research has linked these supply-driven declines in credit to negative effects on economic outcomes, including employment or output (see Alfaro et al. (2021) or Herheknhoff (2019)).

https://doi.org/10.17016/2380-7172.3059

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Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2022-02-22

Number: 2022-02-22