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Economic Growth and Bank Innovation
Gorton, Gary; He, Ping - National Bureau of Economic Research - 2021
Based on archival and survey data we show that the maturity of U.S. business loans has been continuously increasing since the mid-1930s when banks invented the term loan. Concurrently, bank innovation first involved the invention of credit analysis and covenant design. Later, bank innovation...
Persistent link: https://www.econbiz.de/10012660004
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Sovereign Default Risk and Bank Fragility in Financially Integrated Economies
Bolton, Patrick - 2011
government debt. The safest governments inefficiently restrict the amount of high quality debt that could be used as collateral …
Persistent link: https://www.econbiz.de/10012461758
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Repossession and the Democratization of Credit
Assunção, Juliano J. - 2012
We exploit a 2004 credit reform in Brazil that simplified the sale of repossessed cars used as collateral for auto … of a credit reform, highlighting the crucial role that collateral and repossession play in the liberalization and …
Persistent link: https://www.econbiz.de/10012460801
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Credit Building or Credit Crumbling? A Credit Builder Loan’s Effects on Consumer Behavior, Credit Scores and Their Predictive Power
Burke, Jeremy - 2019
There is little evidence on how the large market for credit score improvement products affects consumers or credit market efficiency. A randomized encouragement design on a standard credit builder loan (CBL) identifies null average effects on whether consumers have a credit score and the score...
Persistent link: https://www.econbiz.de/10012480056
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The History and Economics of Safe Assets
Gorton, Gary B. - 2016
-term safe assets are money or money-like. A long-term safe asset can store value over time or be used as collateral. Human …
Persistent link: https://www.econbiz.de/10012456465
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Good Booms, Bad Booms
Gorton, Gary - 2016
careful examination of collateral. As this examination is more valuable when collateral backs projects with low productivity …
Persistent link: https://www.econbiz.de/10012456665
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How Collateral Laws Shape Lending and Sectoral Activity
Calomiris, Charles W. - 2016
We demonstrate the central importance of creditors' ability to use "movable" assets as collateral (as distinct from … with weak collateral laws, relative to immovable assets, and that lending is biased towards the use of immovable assets …. Using sector-level data, we find that weak movable collateral laws create distortions in the allocation of resources that …
Persistent link: https://www.econbiz.de/10012456761
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A Dynamic Theory of Lending Standards
Fishman, Michael J. - 2020
We develop a tractable dynamic model of credit markets in which lending standards and the quality of potential borrowers are endogenous. Competitive banks privately choose their lending standards: whether to pay a cost to screen out some unprofitable borrowers. Lending standards have negative...
Persistent link: https://www.econbiz.de/10012481463
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Rise of Bank Competition : Evidence from Banking Deregulation in China
Gao, Haoyu - 2019
Using proprietary individual level loan data, this paper explores the economic consequences of the 2009 bank entry deregulation in China. Such deregulation leads to higher screening standards, lower interest rates, and lower delinquency rates for corporate loans from entrant banks. Consequently,...
Persistent link: https://www.econbiz.de/10012479745
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Does "Skin in the Game" Reduce Risk Taking? Leverage, Liability and the Long-Run Consequences of New Deal Banking Reforms
Mitchener, Kris James - 2013
This essay examines how the Banking Acts of the 1933 and 1935 and related New Deal legislation influenced risk taking in the financial sector of the U.S. economy. The analysis focuses on contingent liability of bank owners for losses incurred by their firms and how the elimination of this...
Persistent link: https://www.econbiz.de/10012459766