6 Robert M. Adams and Jacob P. Gramlich, “Where Are All the New Banks? The Role of Regulatory Burden in New Charter Creation,” Finance and Economics Discussion Series 2014-113 (Washington: Board of Governors of the Federal Reserve System, December 2014 (revised July 2016)), http://www.federalreserve.gov/econresdata/feds/2014/files/2014113pap.pdf.
An additional sign of risk aversion is that market participants have shifted from the unsecured to the secured market. Let me now address cross-border lending by banks. Looking at price-based indicators, we see two different phases; first, until 2007, a gradual convergence across countries of the rates that banks charged for new loans to non-financial corporations.