relatively smaller information advantage face higher collateral requirements, and that technological innovations that narrow the … information advantage of local lenders, such as small business credit scoring, lead to a greater use of collateral in lending …We consider an imperfectly competitive loan market in which a local relationship lender has an information advantage …

The number of firm bankruptcies is surprisingly low in economies with poor institutions. We study a model of bank …-firm relationship and show that the bank's decision to liquidate bad firms has two opposing effects. First, the bank gets a payoff if a …

, we show that fintech loans to entrepreneurs are more likely to be unsecured and short-term while bank loans are expected … to be asset-backed and long-term. The findings suggest that fintech lenders substitute data for collateral to leverage … their own advantage stemming from lower collateral underwriting costs. The results offer a supply-side explanation for the …

This paper empirically examines the role of soft information in the competitive interaction between relationship and … transaction banks. Soft information can be interpreted as a private signal about the quality of a firm that is observable to a … relationship bank, but not to a transaction bank. We show that borrowers self-select to relationship banks depending on whether …

competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank …

competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition … are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … collateralization in a model where banks do not have this superior screening skill. In particular, we study the effect of bank …

This paper studies the links between competition in the lending market and spreads of bank loans in Brazil. Evidence … interest rates as the bank-firm relationship duration increases. Both results are stronger for micro and small firms than for …

The effects of bank competition and institutions on credit markets are usually studied separately although both factors … are interdependent. We study the effect of bank competition on the choice of contracts (screening versus collateralized … effects of bank competition on collateralization, access to finance, and social welfare depend on the institutional …