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Foreign and Domestic Bank Participation in Emerging Markets : Lessons from Mexico and Argentina
Goldberg, Linda - 2000
studying bank-specific data on lending by domestically- and foreign-owned banks in Argentina and Mexico. We find that foreign … similar, and lending rates analogously respond to aggregate demand fluctuations. In Mexico, foreign and domestic banks with … with high levels of impaired assets (Mexico) have more stagnant loan growth and weak responsiveness to market signals …
Persistent link: https://www.econbiz.de/10012471047
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Related Lending
Porta, Rafael La - 2002
using a newly assembled dataset for Mexico. Related lending is prevalent (20% of commercial loans) and takes place on better …
Persistent link: https://www.econbiz.de/10012469867
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Banks, Short Term Debt and Financial Crises : Theory, Policy Implications and Applications
Diamond, Douglas W. - 2000
Short-term borrowing has often been blamed for precipitating financial crises. We argue that while the empirical association between a financial institution's, or country's, short-term borrowing and susceptibility to crises may, in fact, exist, the direction of causality is often precisely the...
Persistent link: https://www.econbiz.de/10012470986
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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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Large Banks and Small Firm Lending
Bord, Vitaly M. - 2018
We show that since 2007, there was a large and persistent shift in the composition of lenders to small firms. Large banks impacted by the real estate prices collapse systematically contracted their credit to all small firms throughout the U.S.. However, healthy banks expanded their operations...
Persistent link: https://www.econbiz.de/10012480836
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Weak Credit Covenants
Ivashina, Victoria - 2020
Using novel data on 1,240 credit agreements, we investigate sources of contractual complexity in the leveraged loan market. While negative covenants are widespread, carve-out and deductible clauses that weaken them are as frequent. We propose simple measures of contractual weakness, which...
Persistent link: https://www.econbiz.de/10012481510
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Overborrowing, Financial Crises and 'Macro-prudential' Taxes
Bianchi, Javier - 2010
An equilibrium model of financial crises driven by Irving Fisher's financial amplification mechanism features a pecuniary externality, because private agents do not internalize how the price of assets used for collateral respond to collective borrowing decisions, particularly when binding...
Persistent link: https://www.econbiz.de/10012462564
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A Theory of Banks, Bonds, and the Distribution of Firm Size
Russ, Katheryn N. - 2009
We draw on stylized facts from the finance literature to build a model where altering the relative costs of bank and bond financing changes the entire distribution of firm size, with implications for the aggregate capital stock, output, and welfare. Reducing transactions costs in the bond market...
Persistent link: https://www.econbiz.de/10012463195
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Bank Ties and Bond Market Access : Evidence on Investment-Cash Flow Sensitivity in Japan
McGuire, Patrick - 2003
The banking literature has established that banks can alleviate information asymmetries between lenders and borrowers, while the Q literature has used cash flow sensitivity analysis to test whether financing constraints hinder investment. This paper investigates whether bank ties in Japan were...
Persistent link: https://www.econbiz.de/10012469054
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Bankruptcy and Small Firms' Access to Credit
Berkowitz, Jeremy - 2002
In this paper, we investigate how personal bankruptcy law affects small firms' access to credit. When a firm is unincorporated, its debts are personal liabilities of the firm's owner, so that lending to the firm is legally equivalent to lending to its owner. If the firm fails, the owner has an...
Persistent link: https://www.econbiz.de/10012469703