This paper investigates the role of loan contract terms in the performance of consumer credit. Taking advantage of a sample of accepted and rejected consumer loans from a Czech commercial bank, I estimate the elasticity of loan demand and find that borrowers with a high probability of default...

We find that competition from payday lenders leads depository institutions to raise overdraft fees and reduce the availability of “free” checking accounts. We attribute this rise in prices partly to adverse selection created by banks’ practice of charging a flat fee regardless of the...

On December 16th of 2015, the Fed initiated "liftoff," raising the federal funds rate range by 25 basis points and ending a 7-year regime of near-zero rates. We use a unique dataset of 640,000 loan-hour observations to measure the impact of liftoff on interest rates in the peer-to-peer lending...

We find that competition from payday lenders leads depository institutions to raise overdraft fees and reduce the availability of “free” checking accounts. We attribute this rise in prices partly to adverse selection created by banks’ practice of charging a flat fee regardless of the...

This paper empirically investigates the role of geography in online peer-to-peer loan markets. Using transaction-level data, I find strong evidence that lenders are more informed about local projects and have higher demand for better performing local projects. This effect is shown to be driven...

Purpose - to analyse the main borrowing alternatives available to Lithuanian households and the credit market as a whole, focusing on its peer-to-peer (P2P) segment, the forecast of its growth, and possible challenges. Research methodology - the research methods applied were scientific...

This paper exploits a detailed new dataset with comprehensive financial and consumption information to investigate the relationship between a cash-loan borrower's access to credit and their respective consumption response. In particular, we test whether consumption among borrowers with a high...

The current banking crisis highlights the challenges faced in the traditional lending model, particularly in terms of screening smaller borrowers. The recent growth in online peer-to-peer lending marketplaces offers opportunities to examine different lending models that rely on screening by...

Participant lenders in syndicated loans depend on information collected by the lead lender for borrower screening and monitoring, as the lead lender is primarily responsible for ex-ante due diligence in evaluating borrowers. This gives rise to both moral hazard and adverse selection concerns...

Using a proprietary database from a large Chinese state-owned bank, we examine whether information evolved from banking relationships predicts commercial loan default by industrial firms. We find that the bank's relationship information is significantly linked to the incidence of default, and...