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The bank credit "crumble."


  • Ronald Johnson


The role played by cutbacks in commercial loan supply in the U.S. economic downturn in 1990 remains controversial. This article investigates the importance of the credit "crumble" and bank capital shortfalls in the contraction of the commercial loan supply in 1990. The author explores the link between the strength of bank balance sheets and the recent slowdown in commercial and industrial loans to U.S. companies.

Suggested Citation

  • Ronald Johnson, 1991. "The bank credit "crumble."," Quarterly Review, Federal Reserve Bank of New York, issue Sum, pages 40-51.
  • Handle: RePEc:fip:fednqr:y:1991:i:sum:p:40-51:n:v.16no.2

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    References listed on IDEAS

    1. Ando, Albert & Auerbach, Alan J., 1988. "The cost of capital in the United States and Japan: A comparison," Journal of the Japanese and International Economies, Elsevier, vol. 2(2), pages 134-158, June.
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    Bank loans;


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