Table 2 displays the Pearson correlations between bank characteristics. Consistent with prior studies (e.g., Kishan and Opiela, 2000; Bernanke and Lown, 1991), we find a positive correlation between the capital ratio and growth in loan supply (correlation¼0.068). Also consistent with prior literature (e.g., Ivashina and Scharfstein, 2010) we find that loan supply is positively correlated with deposits (correlation¼0.054). This finding is consistent with liquidity constraining loan supply. We also observe that the change in loans is negatively related to the provision but is not significantly correlated with the DNPL