The objective of tis research is to investigate the reaction of the lending behavior of banks to changes in interest rates and changes in the regulatory environment. Since bank lending remains the most important channel of corporate funding, understanding how banks react to policy changes and a changing interest rate environment is important. This research project is based on two data sources. The first is data from an individual bank on mortgage and corporate lending. The second is data on syndicated loans retrieved from Dealscan. We intend to use appropriate econometric techniques to explore the research questions.