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businesses who already have access to bank credit. Firms use FinTech to obtain long-term unsecured loans and reduce their … increase leverage and substitute long-term bank debt with FinTech debt. Our findings suggest that FinTech allows firms to … preserve financial exibility, reduce their bank dependence and exposure to banking shocks. …
Persistent link: https://www.econbiz.de/10012818733
Paycheck Protection Program (PPP). We find that FinTech is disproportionately used in ZIP codes with fewer bank branches, lower …
Persistent link: https://www.econbiz.de/10012244555
Fintechs are believed to help expand credit access to underserved consumers without taking on additional risk. We compare the performance efficiency of LendingClub's unsecured personal loans with similar loans originated by banks. Using stochastic frontier estimation, we decompose the observed...
Persistent link: https://www.econbiz.de/10013272697
This study investigates the behavior of bank non-performing loans in the Fintech era. Using data from 35 developed … countries from 1998 to 2016, the findings show that non-performing loans are fewer in the second wave Fintech era. Also, bank …
Persistent link: https://www.econbiz.de/10013213669
Small business lending has historically been very local, but distances between small businesses and their lenders have steadily increased over the last forty years. This paper investigates a new lending strategy made possible by distant small business lending: industry specialization. Using data...
Persistent link: https://www.econbiz.de/10012230524
We compare the performance of unsecured personal installment loans made by traditional bank lenders with that of … statistical noise. In 2013 and 2016, the largest bank lenders experienced the highest ratio of nonperformance, the highest … inherent credit risk, rather than by lending inefficiency. LendingClub’s performance was similar to small bank lenders as of …
Persistent link: https://www.econbiz.de/10012058938
Using 2013 and 2016 data, we compare the performance of unsecured consumer loans made by U.S. bank holding companies to … ratio, adjusted for statistical noise, and the minimum ratio gauges lending inefficiency. In 2013 and 2016, the largest bank … similar to the high average efficiency of the largest bank lenders - a conclusion that may not be applicable to other fintech …
Persistent link: https://www.econbiz.de/10011929306
markets and in areas that have fewer bank branches per capita. We also find that the portion of LendingClub loans increases in …
Persistent link: https://www.econbiz.de/10011891828
This paper studies how bank market power affects firm creation in innovative industries. Theoretically, I show that the … effect of bank market power is ambiguous. I exploit a 2012 policy intervention in Italy, designed to foster firm creation in … innovative industries through public bank guarantees. The policy increased firm creation in innovative industries by 50%, but the …
Persistent link: https://www.econbiz.de/10013251566
hampered the smooth transmission of accommodative monetary policy. Using bank level data from 2007 to 2015, we directly measure … bank in the same month for loans to small and large firms (the "Small Firm Financing Premium", SFFP). We assess the role … played by both bank and macroeconomic factors in explaining the variation in the SFFP across countries and through time. We …
Persistent link: https://www.econbiz.de/10011697389