Zazzaro, Alberto; Bellucci, Andrea; Borisov, Alexander; … - Money and Finance Research group (Mo.Fi.R.) - 2015
In this paper we empirically test the recent lender-based theory for the use of collateral in bank lending. Based on a proprietary dataset of loan contracts written by a local bank in competitive credit markets, we use the physical proximity between borrowers and the lending branch of the bank...