Similar Search Results

Cortés, Kristle Romero - 2018

Post-crisis stress tests have altered banks' credit supply to small business. Banks affected by stress tests reduce credit supply and raise interest rates on small business loans. Banks price the implied increase in capital requirements from stress tests where they have local knowledge, and exit...

Persistent link: https://www.econbiz.de/10012925906

Large Banks and Small Firm Lending

Bord, Vitaly - 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/10012909114

Liquidity, Pledgeability, and the Nature of Lending

Diamond, Douglas W.; Hu, Yunzhi; Rajan, Raghuram G. - 2022

We develop a theory of how corporate lending and financial intermediation change based on the fundamentals of the firm and its environment. We focus on the interaction between the prospective net worth or liquidity of an industry and the firm’s internal governance or pledgeability. Variations...

Persistent link: https://www.econbiz.de/10013404677

Collateral Pricing

Benmelech, Efraim - 2008

We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited … pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is … complicated by the very selection problem which they imply: creditors will demand collateral precisely from those borrowers who …

Persistent link: https://www.econbiz.de/10012772363

A Theory of Banks, Bonds, and the Distribution of Firm Size

Russ, Katheryn - 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/10013155119

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/10012786618

The Effect of Credit Market Competition on Lending Relationships

Petersen, Mitchell A. - 2000

This paper provides a simple model showing that the extent of competition in credit markets is important in determining the value of lending relationships. Creditors are more likely to finance credit constrained firms when credit markets are concentrated because it is easier for these creditors...

Persistent link: https://www.econbiz.de/10012788596

Banks, Short Term Debt and Financial Crises : Theory, Policy Implications and Applications

Diamond, Douglas W. - 2010

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/10012763305

Overborrowing, Financial Crises and 'Macro-Prudential' Taxes

Bianchi, Javier - 2010

pecuniary externality, because private agents do not internalize how the price of assets used for collateral respond to … collective borrowing decisions, particularly when binding collateral constraints cause asset fire-sales and lead to a financial …

Persistent link: https://www.econbiz.de/10013142089

Systemic Credit Freezes in Financial Lending Networks

Acemoglu, Daron; Ozdaglar, Asuman E.; Siderius, James; … - 2022

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential borrowers. Borrowers are subject to shocks that may force them to default on their loans. In contrast to much of the previous literature on financial networks, we focus on how...

Persistent link: https://www.econbiz.de/10013298205

1
2
3
4
5
6
7
8
9
10
Next
Last