The role that banks play in screening and monitoring their borrowers is well understood. However, these bank activities … question – who monitors the monitor? Financial intermediation theories posit that bank capital structure plays such a role in … incentivizing banks to monitor their borrowers. Both bank debt and bank equity have been proposed in various theories as providing …

We derive three testable predictions from a bank-P2P lender model of competition: (a) P2P lending grows when some banks … consumer bank credit market in Germany and find empirical support. Overall, our analysis indicates that P2P lenders are bottom … are faced with exogenously higher regulatory costs; (b) P2P loans are riskier than bank loans; and (c) the risk …

than those on bank loans. We confront these predictions with data on P2P lending and the consumer bank credit market in … regulatory costs; (ii) P2P loans are riskier than bank loans; and (iii) the risk-adjusted interest rates on P2P loans are lower …

We derive three testable predictions from a bank-P2P lender model of competition: (a) P2P lending grows when some banks … consumer bank credit market in Germany and find empirical support. Overall, our analysis indicates that P2P lenders are bottom … are faced with exogenously higher regulatory costs, (b) P2P loans are riskier than bank loans; and (c) the risk …