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The Cost of Collateralized Borrowing in the Colombian Money Market: Does Connectedness Matter?
Martínez, Constanza; León, Carlos - Banco de la Republica de Colombia - 2014
Under the view that the market is a weighted and directed network (Barabási, 2003), this document is a first attempt to model the Colombian money market within a spatial econometrics framework. By estimating two standard spatial econometric models, we study the cost of collateralized borrowing...
Persistent link: https://www.econbiz.de/10010733996
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Procyclical leverage and value-at-risk
Adrian, Tobias; Shin, Hyun Song - London School of Economics (LSE) - 2013
The availability of credit varies over the business cycle through shifts in the leverage of financial intermediaries. Empirically, we find that intermediary leverage is negatively aligned with the banks’ value-at-risk (VaR). Motivated by the evidence, we explore a contracting model that...
Persistent link: https://www.econbiz.de/10011171761
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Comparison of Bank Credit Ratings for Various Agencies
Karminsky, A.; Sosyurko, V. - In: Journal of the New Economic Association (2011) 12, pp. 102-123
Article proposes comparative studies of credit ratings of the leading Russian and international rating agencies. We analyze approaches and the possibility of comparison of agencies’ rating scales. Purpose of this analysis is to propose method and describe the criteria for comparison of rating...
Persistent link: https://www.econbiz.de/10009422059
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Banking Environment, Agency Costs, and Loan Syndication : A Cross-Country Analysis
Godlewski, Christophe J. - Laboratoire de Recherche en Gestion (LaRGE), Institut … - 2008
Bank loan syndicate structure can be considered as an organizational response to agency problems stemming from the syndication process. The banking environment also influences the syndication process. We investigate how syndicate structure is influenced by the characteristics of the banking...
Persistent link: https://www.econbiz.de/10005727889
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Collateral and Local Lending: Testing the Lender-Based Theory
Zazzaro, Alberto; Bellucci, Andrea; Borisov, Alexander; … - Money and Finance Research group (Mo.Fi.R.) - 2015
In this paper we empirically test the recent lender-based theory for the use of collateral in bank lending. Based on a … borrowers and the lending branch of the bank to capture its information advantage and the magnitude of collateral … higher collateral requirements and lower interest rates. Moreover, competitive pressure from transaction lenders does not …
Persistent link: https://www.econbiz.de/10011265634
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Risk and the role of collateral in debt renegotiation
Neus, Werner; Stadler, Manfred - Wirtschaftswissenschaftlichen Fakultät, … - 2011
In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects … high probability of default, that makes collateral more effective. Instead it turns out that, given the expected return …, the probability of default has no impact on the collateral's effectiveness. Moreover, a higher risk of the project caused …
Persistent link: https://www.econbiz.de/10009216798
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The Use of Collateral in the Argentine Banking System
Bebczuk, Ricardo; Sangiácomo, Máximo - Banco Central de la República Argentina - 2006
This paper addresses in detail, for first time, the use of collateral in the Argentine banking system by exploiting the … empirical literature, as well as the benefits and costs of pledging collateral, the microeconomic determinants of the … probability of posting collateral and of the percentage of guaranteed debt are investigated. The results from annual regressions …
Persistent link: https://www.econbiz.de/10010552024
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A Lender-Based Theory of Collateral
Inderst, Roman; Mueller, Holger M - C.E.P.R. Discussion Papers - 2006
rejects marginally profitable projects. Collateral mitigates this inefficiency by 'flattening' the local lender’s payoff …-à-vis transaction lenders lead to higher collateral requirements, thus strengthening the role of collateral in local lending …
Persistent link: https://www.econbiz.de/10005123922
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The Role of Guarantees in Bank Lending.
Pozzolo, Alberto Franco - Dipartimento di Economia, Gestione, Società e … - 2004
Guarantees play an important role in debt contracts. They alter the risk for the lender, transform borrowers' incentives and, possibly, modify the equilibrium allocation of financial resources. This paper studies the role of guarantees on bank loans, using a sample of over 50,000 individual...
Persistent link: https://www.econbiz.de/10005583217
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The role of guarantees in bank lending
Pozzolo, Alberto Franco - Banca d'Italia - 2004
Guarantees play an important role in debt contracts. They alter the risk for the lender, transform borrowers� incentives and, possibly, modify the equilibrium allocation of financial resources. This paper studies the role of guarantees on bank loans, using a sample of over 50,000 individual...
Persistent link: https://www.econbiz.de/10005609333