A large body of literature has shown that small firms, due to their opaqueness, may find it difficult to access the credit market. Informational asymmetries may be mitigated by posting collateral or by building relationships with lenders (relationship lending). However, in some cases, due to a...

We examine the strategic reaction of banks to the current global financial crisis. In particular, we test whether banks predominantly react by diversifying their loan portfolio or by stepping up their screening and monitoring. To this end we analyze information on nearly 17,000 syndicated loans...

We examine whether banks have systematically stepped up their screening and monitoring efforts during the current global financial crisis. To this end we analyze nearly 17,000 syndicated loans to private borrowers in 60 countries over the period 2005-2008. We find that during the crisis...

We examine whether banks have systematically stepped up their screening and monitoring efforts during the current global financial crisis. To this end we analyze nearly 17,000 syndicated loans to private borrowers in 60 countries over the period 2005-2008. We find that during the crisis...

We examine whether the global financial crisis has prompted banks to tighten lending standards. By analyzing nearly 31,000 syndicated loans to private borrowers in 65 countries over the period 2005-2009, we find that banks not only cut lending during a crisis but also increase their screening...

The question of whether more competition among banks increases relationship banking, which is predicted to improve credit availability for informationally opaque firms in theory, is a controversial issue in the banking literature. By using firm-level survey data in Japan, this paper provides...

In this paper we investigate whether or not mutual guarantee consortia (MGC), a financial institution well developed in Italy, alleviate the difficulties that Small and Medium Enterprises (SMEs) face when they ask for a bank loan. We find that the probability of a small firm affiliated to a MGC...

The question of whether more competition among banks increases relationship banking, which is predicted to improve credit availability for informationally opaque firms in theory, is a controversial issue in the banking literature. By using firm-level survey data in Japan, this paper provides...

We examine whether the global financial crisis has prompted banks to take corrective action with regard to their screening and monitoring. By analyzing almost 15,000 syndicated loans to private borrowers across 65 countries over the period 2005-2009, we find that banks stepped up their screening...

This paper presents a theoretical model of lending which emphasizes the role of asymmetric information and total debt service obligations between creditors and debtors. The analytical approach is based upon that of Stiglitz and Weiss (1981); however, emphasis here is placed upon collateral...