SFS Cavalcade North America 2026
Darden Graduate School of Business Administration, University of Virginia
May 18-21, 2026
Conference Agenda
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Please note that all times are shown in the time zone of the conference. The current conference time is: 18th Apr 2026, 05:01:59am EDT
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Agenda Overview |
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Track T7-3: Banking and Credit Intermediation
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Banks as Stewards 1Federal Reserve Bank of New York; 2UC Berkeley; 3Wharton - Univeristy of Pennsylvania Banks may play a more active role in corporate finance than previously documented. Banks with industry expertise steward firms to undertake value-creating opportunities in transition technologies or expansion (new to the firm) sectors. Bank financing can unlock neglected opportunities, especially when banks have specialization, and firms neglect opportunities because of short-termist discount rates. We set up an empirical two-way fixed effect identification approach, building off the dynamic comparables strategy in the spirit of Sun and Abraham (2021) to test these predictions empirically in U.S. administrative loan data. We leverage detailed regulatory risk measures and granular loan-level industry attribution in supervisory data that covers over 70% commercial lending. We find that firms are more likely to undertake transition and expansion loans with specialized banks. Furthermore, we show empirically that the effect of stewardship is stronger for short-termist firms, consistent with the idea that such firms would otherwise neglect value-creating opportunities (Kodak moments). We show the results are robust to limiting the sample to firms with similar transition opportunities due to the passage of the Inflation Reduction Act, limiting concerns about dynamic confounders. Consistent with stewardship emerging a consequence of bank specialization (e.g. Paravisini et al. (2023), Blickle et al. (2024)), we document that banks offer lower interest rates for these projects. Active bank stewarding moves the literature beyond the classic view of banks as mere credit providers.
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