The Real Effects of Universal Banking: Does Access to the Public Debt Market Matter?

摘要: I analyze the impact of formation universal banks on corporate investment by looking at gradual dismantling Glass-Steagall Act’s separation between commercial and banking. Using a sample US firms their relationship banks, show that curtail debt issuance after positive shocks to underwriting capacity main bank. This result is driven unrated strongest immediately shock. These findings suggest may pay more attention large providing opportunities while exacerbating financial constraints opaque firms, in line with shift banking model based transactional lending.