Did U.S. bank supervisors get tougher during the credit crunch? Did they get easier during the banking boom? Did it matter to bank lending?

Allen Berger (aberger@moore.sc.edu), Margaret Kyle and Joseph M. Scalise

No 2000-39, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We test three hypotheses regarding changes in supervisory \"toughness\" and their effects on bank lending. The data provide modest support for all three hypotheses that there was an increase in toughness during the credit crunch period (1989-1992), that there was a decline in toughness during the boom period (1993-1998), and that changes in toughness, if they occurred, affected bank lending. However, all of the measured effects are small, with 1% or less of loans receiving harsher or easier classification, about 3% of banks receiving better or worse CAMEL ratings, and bank lending being changed by 1% or less of assets.

Keywords: Bank supervision; Credit; Bank loans (search for similar items in EconPapers)
Date: 2000
New Economics Papers: this item is included in nep-his and nep-mon
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Related works:
Chapter: Did US Bank Supervisors Get Tougher during the Credit Crunch? Did They Get Easier during the Banking Boom? Did It Matter to Bank Lending? (2001)
Working Paper: Did U.S. Bank Supervisors Get Tougher During the Credit Crunch? Did They Get Easier During the Banking Boom? Did It Matter to Bank Lending? (2000)
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