The Loan Covenant Channel: How Bank Health Transmits to the Real Economy
---- Acknowledgements ----
We thank David Scharfstein, Andrei Shleifer, Jeremy Stein, Amir Sufi, and numerous seminar participants for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the Federal Reserve Board of Governors or the National Bureau of Economic Research. The SNC data are confidential and were processed solely within the Federal Reserve.