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Collateralization, Bank Loan Rates and Monitoring : Evidence from a Natural Experiment

Cerqueiro, G.M.; Ongena, S.; Roszbach, K. - Tilburg University, Center for Economic Research - 2011

Collateral is one of the most important features of a debt contract. A substantial theoretical literature motivates the … use of collateral as a means to alleviate ex-ante and ex-post information asymmetries between borrowers and lenders and … the incidence of credit rationing. Through its seniority effect, collateral may also affect banks’ incentives to monitor …

Persistent link: https://www.econbiz.de/10011090503

Reexamining the Empirical Relation between Loan Risk and Collateral : The Role of the Economic Characteristics of Collateral

Ioannidou, Vasso; Berger, A.N.; Frame, W.S. - Tilburg University, Center for Economic Research - 2012

empirical relation between collateral and loan risk. We posit that certain economic characteristics of collateral may be … associated with the empirical dominance of different risk-collateral channels implied by economic theory, namely the “lender … predictions regarding the empirical relations between collateral and loan risk. For our sample of commercial loans, we find that …

Persistent link: https://www.econbiz.de/10011090718

Tests of Ex Ante Versus Ex Post Theories of Collateral Using Private and Public Information

Ioannidou, Vasso; Berger, A.N.; Frame, W.S. - Tilburg University, Center for Economic Research - 2010

Collateral is a widely used, but not well understood, debt contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant, although the ex ante theories are also valid for customers with …

Persistent link: https://www.econbiz.de/10011092269

The Impact of Competition on Bank Orientation and Specialization

Degryse, Hans; Ongena, S. - Tilburg University, Center for Economic Research - 2003

How do banks react to increased interbank competition?Recent banking theory offers conflicting predictions about the impact of competition on bank orientation í L H WKH choice of relationship based versus transactional banking í DQG EDQN LQGXVWU\ specialization.We empirically investigate the...

Persistent link: https://www.econbiz.de/10011090384

Distance, Lending Relationships and Competition

Degryse, Hans; Ongena, S. - Tilburg University, Center for Economic Research - 2002

A recent string of theoretical papers highlights the importance of geographical distance in explaining pricing and availability of loans to small firms.Lenders located in the vicinity of small firms have significantly lower monitoring and transaction costs, and hence considerable market power if...

Persistent link: https://www.econbiz.de/10011090398

Lending to Small Businesses : The Role of Loan Maturity in Adressing Information Problems

Penas, María Fabiana; Ortiz-Molina, H. - Tilburg University, Center for Economic Research - 2004

maturities are associated with collateral pledges, better financial condition, good credit history, and less informational …

Persistent link: https://www.econbiz.de/10011090626

Shocks to Bank Lending, Risk-Taking, Securitization, and Their Role for U.S. Business Cycle Fluctuations

Wagner, Wolf; Peersman, G. - Tilburg University, Center for Economic Research - 2014

Abstract: Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary policy innovations account for more than 30 percent of U.S. output variation. The dynamic effects, however, depend on the type of shock. Expansionary securitization shocks...

Persistent link: https://www.econbiz.de/10011091756

Distance, Lending Relationships, and Competition

Degryse, Hans; Ongena, S. - Tilburg University, Center for Economic Research - 2003

A recent string of theoretical papers has highlighted the importance of geographical distance in explaining loan rates for small firms.Lenders located in the vicinity of small firms face significantly lower transportation and monitoring costs, and hence wield considerable market power, if...

Persistent link: https://www.econbiz.de/10011091782

Bank Behavior with Access to Credit Risk Transfer Markets

Goderis, Benedikt; Wagner, Wolf; Marsh, I.; Vall … - Tilburg University, Center for Economic Research - 2006

One of the most important recent innovations in financial markets has been the development of credit derivative products that allow banks to more actively manage their credit portfolios than ever before.We analyze the effect that access to these markets has had on the lending behavior of a...

Persistent link: https://www.econbiz.de/10011092253

The Impact of Bank Consolidation on Commercial Borrower Welfare

Karceski, J.; Ongena, S.; Smith, D.C. - Tilburg University, Center for Economic Research - 2000

We estimate the impact of bank merger announcements on borrowers' stock prices for publicly-traded Norwegian firms.In addition, we analyze how bank mergers influence borrower relationship termination behavior and relate the propensity to terminate to borrower abnormal returns.We obtain four main...

Persistent link: https://www.econbiz.de/10011092497