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Bank Skin in the Game and Loan Contract Design : Evidence from Covenant-Lite Loans

Billett, Matthew T. - 2014

In a model of dual agency problems where borrower-lenders and bank-nonbank incentives may conflict, we predict a hockey stick relation between bank skin in the game and covenant tightness. As bank participation declines covenant tightness increases until reaching a low threshold, at which point...

Persistent link: https://www.econbiz.de/10013065153

Bank credit and market-based finance for corporations : the effects of minibond issuances

Ongena, Steven; Pinoli, Sara; Rossi, Paola; Scopelliti, … - 2020

Does a diversification of funding sources affect the financing conditions for firms? To answer this question we study a regulatory reform which allowed unlisted firms to issue minibonds. Using the Italian Credit Register, we compare new loans granted to issuer firms with new loans concurrently...

Persistent link: https://www.econbiz.de/10012419623

Bank credit and market-based finance for corporations : the effects of minibond issuances

Ongena, Steven; Pinoli, Sara; Rossi, Paola; Scopelliti, … - 2020

We study the effects of the diversification of funding sources on the financing conditions for firms. We exploit a regulatory reform which took place in Italy in 2012, i.e., the introduction of "minibonds", which opened a new market-based funding opportunity for unlisted firms. Using the Italian...

Persistent link: https://www.econbiz.de/10012390449

Bank credit and market-based finance for corporations : the effects of minibond issuances

Ongena, Steven; Pinoli, Sara; Rossi, Paola; Scopelliti, … - 2021

We study the effects of diversifying funding sources on the financing conditions for firms. We exploit a regulatory reform that took place in Italy in 2012, i.e. the introduction of ‘minibonds’, which opened a new market-based funding opportunity for unlisted firms. Using the Italian Credit...

Persistent link: https://www.econbiz.de/10012614108

The paradox of progress : technological advancements in banking and the dual impact on SME bank borrowing

Hryckiewicz, Aneta; Korosteleva, Julia; Kozłowski, Łukasz - 2024

This study delves into the impact of technological bank innovations on small and medium-sized enterprise (SME …) borrowing across the European Union. By analyzing a comprehensive dataset of 179,921 SME-bank lending relationships from 2009 to … banking, offering insights into the dualistic nature of the impact of technology on SME financing. …

Persistent link: https://www.econbiz.de/10015071855

Investigation on the credit risk transfer effects on the banking stability and performance

Younes, R. - In: Cogent economics & finance 10 (2022) 1, pp. 1-21

Considered among of the main causes of the 2007 financial crisis, the credit risk transfer activities deserve nowadays particular attention. This study discusses the continuous effectiveness of the credit risk transfer activities by investigating their effects on the bank risk, liquidity and...

Persistent link: https://www.econbiz.de/10013435725

Information Asymmetry, Relationship Banking and Financing Costs of SME's

Fidrmuc, Jarko - 2016

We focus on the determinants and potentially associated benefits of relationship banking. Based on existing literature and the unique role intangible assets might play regarding asymmetric information, we derive three testable predictions. Using rich data on firm-bank relationships in Germany,...

Persistent link: https://www.econbiz.de/10013005257

Bank capital requirements, loan guarantees and firm performance

Mayordomo, Sergio; Moreno, Antonio; Ongena, Steven; … - 2019 - This draft: April 12, 2019

This paper studies the effects of the bank capital requirements imposed by the European authorities in October 2011 on loan collateral and personal guarantees usage to enhance capital ratios. We use detailed information on the loan contracts granted by a representative Spanish bank and several...

Persistent link: https://www.econbiz.de/10012051949

Do Banks Price Discriminate Spatially? Evidence from Small Business Lending in Local Credit Markets

Bellucci, Andrea - 2013

In this paper we explore the effects of bank-borrower physical proximity on price and non-price aspects of small business lending in local credit markets. Along the price dimension, our analysis reveals that interest rates increase with bank-borrower distance and decrease with the distance...

Persistent link: https://www.econbiz.de/10013087190

Collateral, default risk, and relationship lending : an empirical study on financial contracting

Elsas, Ralf; Krahnen, Jan Pieter - 2000 - Current draft: February 29, 2000

lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … decision-making and contract design. In particular, bank internal borrower ratings serve to evaluate borrower quality, and the … contract design is mainly driven by aspects of relationship lending and renegotiations. We found that relationship lenders or …

Persistent link: https://www.econbiz.de/10009768264