Showing 1 - 10 of 3,194
The traditional model of bank-led financial intermediation, where banks issue demandable deposits to savers and make informationally sensitive loans to borrowers, has seen a dramatic decline since 1970s. Instead, private credit is increasingly intermediated through arms-length transactions, such...
Persistent link: https://www.econbiz.de/10014486266
Nonbank lenders have been playing an increasing role in supplying debt, especially after the Great Recession. How important are the distortions in the greater regulation of banks that differentially limit risk-taking across alternative providers of credit? How might the growing role of nonbanks...
Persistent link: https://www.econbiz.de/10014486206
When banks are confronted with systemic crises, some banks reduce the credit risk in their loan portfolios, whereas others exploit potential government bailouts and increase their internal credit risk in their loan portfolios. Using a connectedness sample method identifying managerial styles...
Persistent link: https://www.econbiz.de/10013252143
After exogenous shocks caused by natural disasters, the surge in demand for mortgages to rebuild damaged property is satisfied by FinTech lenders more than by traditional and shadow banks. Although both FinTech and traditional bank lenders increase mortgage availability, FinTech lenders are more...
Persistent link: https://www.econbiz.de/10012831443
The Community Reinvestment Act (CRA) requires banks to lend to low- and moderate-income (LMI) households in the areas where they take deposits. But it has become obsolete.We have serious reservations as to whether any regulatory agency could have the wisdom necessary to administer such a system...
Persistent link: https://www.econbiz.de/10012846234
This paper proposes a novel measure of financial fragility for shadow bank mortgage lenders and investigates its implications on credit supply and financial stability. The overall financial fragility of the shadow bank sector has been consistently increasing in recent years, reaching its highest...
Persistent link: https://www.econbiz.de/10014239194
A national loan level data set, aggregated at the zip code is used to examine the elasticity of default relative to local demographic characteristics and state level legislation regulating foreclosure procedures and predatory lending. We also illustrate the merit of using a form of hierarchical...
Persistent link: https://www.econbiz.de/10013152709
Small businesses are championed by politicians seeking votes. We study how the competitiveness of congressional elections affects small business loan subsidies. To identify the causal impact of electoral competitiveness, we examine politically-motivated congressional redistricting...
Persistent link: https://www.econbiz.de/10012849072
We find the financial condition of states impacts bank credit supply through their municipal bond holdings. In particular, we treat sudden political and statutory actions during the 2011 union bargaining rights debates in Wisconsin and Ohio as exogenous shocks to state solvency. We show bank...
Persistent link: https://www.econbiz.de/10012974923
We find some support for theories predicting that the presence of informed investors adversely affects liquidity: When arrangers retain a share in the loan this impacts negatively liquidity. We find strong evidence that investor diversity is beneficial to liquidity: Loans with larger syndicates;...
Persistent link: https://www.econbiz.de/10012934253