Related Lending
Rafael La Porta, Florencio Lopez-de-Silane, Guillermo Zamarripa
In many countries, banks lend to firms controlled by the bank?s owners. We examine the benefits of related lending using a newly assembled dataset for Mexico. Related lending is prevalent (20% of commercial loans) and takes place on better terms than arm?s-length lending (annual interest rates are 4 percentage points lower). Related loans are 33% more likely to default and, when they do, have lower recovery rates (30% less) than unrelated ones. The evidence supports the view that rather than enhance information sharing, related lending is a manifestation of looting
Year of publication: |
March 2002
|
---|---|
Authors: | Porta, Rafael La |
Other Persons: | Lopez-de-Silane, Florencio (contributor) ; Zamarripa, Guillermo (contributor) |
Institutions: | National Bureau of Economic Research (contributor) |
Publisher: |
Cambridge, Mass : National Bureau of Economic Research |
Subject: | Mexiko | Mexico | Kreditgeschäft | Bank lending | Kapitalbeteiligung | Equity participation |
Saved in:
freely available
Extent: | 1 Online-Ressource |
---|---|
Series: | NBER working paper series ; no. w8848 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Mode of access: World Wide Web System requirements: Adobe [Acrobat] Reader required for PDF files Hardcopy version available to institutional subscribers. |
Other identifiers: | 10.3386/w8848 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012469867