We review research on the effects of banks on the real economy, including, but not limited to
articles in this Special Issue of the Journal of Corporate Finance. We focus primarily on US …

We present evidence that banking development plays a key role in technological progress.
We focus on manufacturing firms' innovative performance, measured by patent-based …

Credit supply expansion can affect an economy by increasing productive capacity or by
boosting household demand. In this study, we develop a test to determine if the household …

This chapter provides a theory model of trade finance to explain the “great trade collapse.”
The model shows that, first, the riskiness of international transactions rises relative to …

Although research shows that competitive banks spur corporate growth, less is known about
the impact of bank competition on corporate risk. Using a sample of more than 70,000 firm …

We study the business cycle consequences of credit supply expansion in the US The 1980's
credit boom resulted in stronger credit expansion in more deregulated states, and these …

The 1994 Riegle‐Neal Act (RN) removed restrictions on branch‐network expansion for
banks in the United States. An important motivation was to facilitate geographic risk …

We uncover a new channel through which international finance is related to trade: the
formation of international bank linkages increases exports. Bank linkages are measured for …

The correlation in house price growth across US states increased steadily between 1976
and 2000. This paper shows that the contemporaneous geographic integration of the US …

Exploiting unique, time-varying, bilateral data on bank ownership for many countries, we
show that exports tend to be larger when a foreign bank from the importing country is …