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’ impact on lending cycles, controlling for other determinants of credit growth. We find robust empirical evidence that higher … when entering a credit contraction period severely impacts lending (i.e., may bring about a deep credit crunch), with …In this paper, we analyze the role bank capital played in systemic banking crises and in lending expansion and …
Persistent link: https://www.econbiz.de/10012545573
In this notes, I argue and show that the so-called Efficient Markets Hypothesis (EMH) is no less than a false prophecy, the Black-Scholes-Merton (BSM) formula - a perfect rendition of EMH - no more than a parlor trick, and risk-neutral pricing models - generalisations of BSM - severe...
Persistent link: https://www.econbiz.de/10012937483
Small Business Administration (SBA) loans have long been one of the most significant policy interventions in the U.S. affecting firm behavior, but little is known about their outcomes. This paper estimates the effects on employment using a list of all SBA loans linked to annual data on all U.S....
Persistent link: https://www.econbiz.de/10013088193
imply an increase of 3 to 3.5 jobs for each million dollars of loans, suggesting real effects of credit constraints …. Estimated impacts are stronger for younger and larger firms and when local credit conditions are weak, but we find no clear …
Persistent link: https://www.econbiz.de/10013004055
lenders. The estimation results imply an increase of 3-4 jobs for each million dollars of loans, suggesting that credit … for the SBA 504 versus 7(a) programs, and with respect to the business cycle, local credit conditions, and within …
Persistent link: https://www.econbiz.de/10013016226
Small Business Administration (SBA) loans have long been one of the most significant policy interventions in the U.S. affecting firm behavior, but little is known about their outcomes. This paper estimates the effects on employment using a list of all SBA loans linked to annual data on all U.S....
Persistent link: https://www.econbiz.de/10013077297
We exploit contract-level data on approved and rejected small-business loans to assess the impact of a new credit … registry in Bosnia and Herzegovina. Our findings are threefold. First, mandatory information sharing tightens lending at the … — especially registry information on applicants' outstanding debt — and less on soft information. Second, lending standards also …
Persistent link: https://www.econbiz.de/10013004696
credit registry in Bosnia and Herzegovina. Our findings are threefold. First, mandatory information sharing tightens lending … at the extensive margin as more applications are rejected, in particular in areas with strong credit market competition … — and less on soft information. Second, lending standards also tighten at the intensive margin: the registry leads to …
Persistent link: https://www.econbiz.de/10013004833
argument that higher capital reduces the cost of uninsured debt, the positive effect of bank capital on lending is stronger … capital on lending …
Persistent link: https://www.econbiz.de/10012973015
lending. Taking advantage of the internal reporting system of a large federal credit union, we delineate three important … biases likely to affect the lending process: (1) limited attention (or distraction), (2) task-specific human capital, and (3 …) common identity. Specifically, we find that using soft information in lending decisions leads to worse loan quality when loan …
Persistent link: https://www.econbiz.de/10011931483