This table shows the effects of bank regulatory capital for loan acquisition by nonbanks. The unit of observation in each regression is a loan-year. The dependent variable is the fraction of the loan held by nonbanks. Columns [3] and [5] interact bank capital with the TED spread (⁠|$TED_t$|⁠), which is defined as the yearly average of the daily difference between the three-month London Interbank Offered Rate (LIBOR) and the three-month U.S. Treasury rate. Note that |$TED_t$| is demeaned. Columns [4] and [5] consider loans that have been classified as “Fail” by the examining agency. These are loans rated special mention, substandard, doubtful, or loss. Where indicated, independent variables—bank controls shown in Table 3—are coded at the loan syndicate level by taking the simple (equally weighted) average across syndicate member banks. The sample period is from 1993 to 2014. Where indicated, the columns include controls for bank, loan, and year fixed effects, and loan controls (a regulatory pass/fail dummy and the natural logarithm of loan maturity). All variables are defined in Table A1. Standard errors (in parentheses) are clustered at the year level. ***, **, and * denote 1%, 5%, and 10% statistical significance, respectively.