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Systemic usury and the European consumer credit directive
Neuberger, Doris; Reifner, Udo - In: Vierteljahrshefte zur Wirtschaftsforschung 89 (2020) 1, pp. 115-132
Usury is a frequent occurrence in consumer credit markets and particularly affects low-income households. Although the … term usury conjures images of a greedy individual consciously acting to exploit the weak bargaining position of another by … contracts. This paper reviews the economic rationale for usury legislation and evaluates the European Consumer Credit Directive …
Persistent link: https://www.econbiz.de/10012507235
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Predatory Lending Practices and Subprime Foreclosures : Distinguishing Impacts by Loan Category
Rose, Morgan J. - 2011
A recent dramatic rise in subprime foreclosures has led to calls for restrictions against a range of loan features loosely termed “predatory.” Several cities and states have enacted regulations to curb predatory practices, and some advocacy groups endorse action at the federal level. Using...
Persistent link: https://www.econbiz.de/10013122288
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Hierarchical Modeling of Residential Default : Does State Level Foreclosure and Predatory Lending Legislation Limit 'Bad' Loans?
Goodman, Allen C. - 2010
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
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2003 Testimony on Securitization and Predatory Lending in a Hearing on 'Protecting Homeowners : Preventing Abusive Lending While Preserving Access to Credit'
Eggert, Kurt - 2009
This 2003 Congressional Testimony warns of the dangers of securitizing subprime loans. After defining "predatory lending" and describing the process of securitization, it argues that securitizing subprime loans has many dangers. While some have claimed that securitizing loans lowers loan costs...
Persistent link: https://www.econbiz.de/10013155644
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Bank Loans Pricing and Basel II : A Multi-Period Risk-Adjusted Methodology Under the New Regulatory Constraints
Curcio, Domenico - 2011
Under the new Basel II regulatory framework, the need for an effective risk-adjusted pricing mechanism has become even more central in banking than in the past: banks are spurred to develop risk-adjusted measures, to avoid wasteful customers' cross-subsidization and support the value creation...
Persistent link: https://www.econbiz.de/10013131209
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Do Multiple Credit Ratings Affect Syndicated Loan Spreads?
Drago, Danilo - 2019
We analyse whether soliciting multiple ratings leads to lower syndicated loan spreads. Our results document that banks apply, on average, lower spreads to multi-rated firms. This effect depends on the reduction of information asymmetry about borrowers' creditworthiness (information production...
Persistent link: https://www.econbiz.de/10012900023
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The Basel capital requirement, lending interest rate, and aggregate economic growth : an empirical study of Viet Nam
Nguyet Thi Minh Phi; Hanh Thi Hong Hoang; … - 2019
In recent years, the Vietnamese economy has shown signs of financial distress, and especially small banks have experienced serious liquidity and solvency problems. Based on the new policy of the State Bank of Vietnam, in order to ensure safe and effective banking operations, the Basel II accord...
Persistent link: https://www.econbiz.de/10011959821
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Intermediary-Based Loan Pricing
Mabille, Pierre; Wang, Olivier - 2021
We study how shocks to banks transmit to both the price and non-price terms of loans, in a model of multidimensional contracting between heterogeneous risky borrowers and intermediaries with limited lending capacity. The elasticities of loan demand and default rates to interest rates are...
Persistent link: https://www.econbiz.de/10013311061
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Net flow rates versus roll rates as non-performing consumer loans forecasting methodologies
De Ribera Martin, Francisco de Asis - In: Revista de métodos cuantitativos para la economía y … 34 (2022), pp. 37-59
Roll rates and net flow rates can be seen as the evolution of ageing of accounts receivable and Markov chains. They are accepted methodologies to model the behavior of non-performing consumer loans by buckets and to predict losses, but we find that quite often they are wrongly used as...
Persistent link: https://www.econbiz.de/10013485817
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Higher bank capital requirements and mortgage pricing : evidence from the Counter-Cyclical Capital Buffer
Basten, Christoph; Koch, Cathérine - 2014
We examine mortgage pricing before and after Switzerland was the first country to activate the Counter-Cyclical Capital Buffer of Basel III. Observing multiple mortgage offers per request, we obtain three core findings. First, capitalconstrained and mortgage-specialized banks raise their rates...
Persistent link: https://www.econbiz.de/10010402680