Financing Loan Growth at Banks

Posted: 8 Mar 2003 Last revised: 27 Aug 2014

See all articles by Ronald E. Shrieves

Ronald E. Shrieves

University of Tennessee, Knoxville - Department of Finance

Drew Dahl

Federal Reserve Banks - Federal Reserve Bank of St. Louis

Michael F. Spivey

Clemson University - Department of Finance

Date Written: December 2002

Abstract

We analyze investment and financing decisions for a broad sample of affiliated and independent banks during the 1994-1998 period. Our results indicate that growth in lending at affiliated banks is supported by net equity financing flows from parent holding companies. We also provide evidence that loan growth at affiliated banks, relative to independent banks, is less constrained by capital availability. Both findings appear relevant to understanding the diminishing role of independent banks in aggregate lending.

Keywords: Banks, loans, financing, internal capital market

Suggested Citation

Shrieves, Ronald E. and Dahl, Drew and Spivey, Mike, Financing Loan Growth at Banks (December 2002). Journal of Financial Services Research, Volume 22, Issue 3, December 2002, Available at SSRN: https://ssrn.com/abstract=382965

Ronald E. Shrieves (Contact Author)

University of Tennessee, Knoxville - Department of Finance ( email )

Knoxville, TN 37996
United States

Drew Dahl

Federal Reserve Banks - Federal Reserve Bank of St. Louis ( email )

P.O. Box 442
St. Louis, MO 63166-0442
United States

Mike Spivey

Clemson University - Department of Finance ( email )

Clemson, SC 29634
United States

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