Patti, Emilia Bonaccorsi di - Banca d'Italia - 2009
This paper analyzes the relationship between the terms on bank loans and local crime rates, employing a sample of over … 300,000 bank-firm relationships. Controlling for firm, market and bank characteristics the results show that where the … crime rate is higher borrowers pay higher interest rates, pledge more collateral, and resort less to asset-backed loans and …