How do changes in market structure impact accessibility to credit? Following the introduction of publicly disclosed Comprehensive Capital Analysis and Review stress tests, market shares of affected banks shrunk by about 2.1 pp. Impact significantly differs across regions, with shares dropping an...

We examine lender disqualification provisions in syndicated loan contracts. These provisions prohibit lenders from assigning loans to entities on a disqualified lender list provided by borrowers during loan origination. We provide evidence that loan contracts are more likely to include lender...

We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated manufacturer to increase the cash collected from car...

The advancement of financial technology has given rise to the online peer-to-peer lending (P2P lending) platform to provide loans. P2P lending provides loans without the role of financial intermediaries such as banks. Further, P2P lending is expected to increase access to financing for...

In this paper, we model the first phase of the syndicated loan process by mapping it onto contract bidding theory. Our stylized cost model includes several costs components including the effort made by a candidate lender to be attractive to the borrower. This effort is then modeled as a function...

Using comprehensive credit bureau data, we document that consumers who borrow from marketplace lending (MPL) platforms have lower credit scores and higher default rates in the long run relative to observably similar applicants for bank loans. This underperformance of MPL borrowers is more...

We study non-performing loan (NPL) resolution using proprietary data on NPL transactions in China. We find these transactions – driven by tighter financial regulation – are consistent with banks concealing non-performing assets from regulators as (i) transaction prices do not compensate for...

This paper studies whether and how banks’ technology adoption affects the bank lending channel of monetary policy transmission. We construct a new measurement of bank-level technology adoption, which can tell whether the technology is related to the bank’s lending business and which specific...

Research Summary: When evaluating Internet-based loan project of small and medium size firms (SME), lenders can rely on easy-to-understand risk ratings or more sophisticated financial information. We investigate lenders decisions and its effect on loan funding success on the marketplace lending...

This paper explores the potential outcomes of using peer-to-peer lenders in financing economic activity. Combining a random regression forest, a machine-learning process, with an agent-based model, we perform simulations on artificial economies with various degrees of adoption of peer-to-peer...