Showing 1 - 10 of 118
This paper assesses the relative importance of two key drivers of mortgage default: negative equity and illiquidity. To do so, the authors combine loan-level mortgage data with detailed credit bureau information about the borrower's broader balance sheet. This gives them a direct way to measure...
Persistent link: https://www.econbiz.de/10013133615
also the case that research on banks in this area has not received adequate attention. The authors model controls for risk … characteristics of the target banks, the deal characteristics, and the economic environment. Their results are robust. They support …
Persistent link: https://www.econbiz.de/10013138830
2010. In addition, payment collection times and associated float fell dramatically for collecting banks and payees with …
Persistent link: https://www.econbiz.de/10013105575
We show that the regulation of bank lending practices is necessary for the optimal provision of private liquidity. In an environment in which bankers cannot commit to repay their creditors, we show that neither an unregulated banking system nor narrow banking can provide the socially efficient...
Persistent link: https://www.econbiz.de/10013106520
In this paper we use credit rating data from two large Swedish banks to elicit evidence on banks' loan monitoring … ability. For these banks, our tests reveal that banks' credit ratings indeed include valuable private information from …
Persistent link: https://www.econbiz.de/10013081556
Banks supply payment services that underpin the smooth operation of the economy. To ensure an efficient payment system …-provided payment services. Billion dollar banks account for around 90 percent of assets in the U.S., and those with around $4 to $7 … billion in assets turn out to be both the most and the least competitive in payment services, not the very largest banks …
Persistent link: https://www.econbiz.de/10013082219
Earlier studies found little evidence of scale economies at large banks; later studies using data from the 1990s … uncovered such evidence, providing a rationale for very large banks seen worldwide. Using more recent data, we estimate scale … driven by too-big-to-fail considerations. We evaluate the cost implications of breaking up the largest banks into banks of …
Persistent link: https://www.econbiz.de/10013092593
Mexican banking industry, domestic and foreign banks act strategically in the authors' framework. After calibrating the model …
Persistent link: https://www.econbiz.de/10013015121
Contract enforceability in financial markets often depends on the aggregate actions of agents. For example, high default rates in credit markets can delay legal enforcement or reduce the value of collateral, incentivizing even more defaults and potentially affecting credit supply. We develop a...
Persistent link: https://www.econbiz.de/10013000805
Fintech has been playing an increasing role in shaping financial and banking landscapes. Banks have been concerned … slotted into “better” loan grades and therefore get lower priced credit. Also, for the same risk of default, consumers pay …
Persistent link: https://www.econbiz.de/10012951661