Hughes, Joseph P.; Jagtiani, Julapa; Moon, Choon-geol - In: Financial innovation : FIN 8 (2022), pp. 1-39
are driven by inherent credit risk, rather than lending inefficiency. Smaller banks are less efficient. In addition, as of … market incentives for lenders to take credit risk. Market value regression using the NPL ratio suggests that market … (inherent credit risk and lending inefficiency) tells a deeper underlying story: market value is significantly positively …