Related Lending
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: |
[2010]
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Authors: | La Porta, Rafael |
Other Persons: | Lopez de Silanes, Florencio (contributor) ; Zamarripa, Guillermo (contributor) |
Publisher: |
[2010]: [S.l.] : SSRN |
Subject: | Mexiko | Mexico | Kreditgeschäft | Bank lending | Kapitalbeteiligung | Equity participation |
Saved in:
freely available
Extent: | 1 Online-Ressource (34 p) |
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Series: | NBER Working Paper ; No. w8848 |
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 2002 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012763038