Download or read book Financial Crisis and Bank Lending written by Simon H. Kwan and published by DIANE Publishing. This book was released on 2010-10 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Estimates the amount of tightening in bank commercial and industrial (C&I) loan rates during the financial crisis. After controlling for loan characteristics and bank fixed effects, as of 2010:Q1, the average C&I loan spread was 66 basis points or 23 percent above normal. From about 2005 to 2008, the loan spread averaged 23 basis points below normal. Thus, from the unusually loose lending conditions in 2007 to the much tighter conditions in 2010:Q1, the average loan spread increased by about 1 percentage point. The author finds that large and medium-sized banks tightened their loan rates more than small banks; while small banks tended to tighten less, they always charged more. Charts and tables.