... derivative market. A bank s net interest margin enters into the equation because banks can use derivatives to lock -in the spread between interest income and interest expense. Since derivative ... 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. 5. Robustness ... banks and growth in their commercial and industrial loan portfolios. More specifically, we find that aggregate use of derivative instruments, in particular interest- rate options, interest- rate...