... that aggregate use of derivative instruments, in particular interest- rate options, interest- rate futures, and interest- rate forwards, is associated with higher growth rates in C&I loans. ... commercial and industrial loan portfolios. More specifically, we find that aggregate use of derivative instruments, in particular interest- rate options, interest- rate futures, and interest- rate ... economic performance affects bank health is intuitive and broadly consistent with the aggregate banking data.6 Avery and Gordy (1998) find that one-half of the change in bank loan performance from...