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This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and relationship lending can be present. We conjecture and empirically validate that relationship lenders, who enjoy an informational advantage over arm's-length banks, are more...
Persistent link: https://www.econbiz.de/10009767124
examination of credit files of five leading German banks, thus relying on information actually used in the process of bank credit …
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credit-file information on distressed lending relationships in Germany. In particular, it includes information on creditor …
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paper to provide a direct comparison between housebanks and "normal" banks as to their credit policy. Therefore, we analyze … a new data set, representing a random sample of borrowers drawn from the credit portfolios of five leading German banks … over a period of five years. We use credit-file data rather than industry survey data and, thus, focus the analysis on …
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This paper contributes to the economics of financial institutions risk management by exploring how loan securitization affects their default risk, their systematic risk, and their stock prices. In a typical CDO transaction a bank retains through a first loss piece a very high proportion of the...
Persistent link: https://www.econbiz.de/10003221977