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Promoting credit services to small and medium-size enterprises (SMEs) has been a perennial challenge for policy makers globally due to high information costs. Recent fintech developments may be able to mitigate this problem. By leveraging big data or digital footprints on existing platforms,...
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We show that the liquidation value of collateral depends on who is pledging it. We employ transaction-level data on overnight repurchase agreements (repo) and loan-level credit registry data on corporate loans. We find that borrowers on the repo market pay a 2.6 basis points rate premium when...
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We put our hypothesis very straightforward, considering the euro area and the whole European Economic and Monetary … Union (EMU) banking sector. The paper's central hypothesis that capital adequacy of the EMU banking sector influenced credit … that, in general, there was a dependency between banks' capital adequacy and loan growth in the euro area for the observed …
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By examining the relationship between private credit growth and the possibility of credit risk while focusing on international capital in 21 countries over the period 2000:1Q-2015:2Q, this paper shows that the impact of private credit growth on credit risk is apparent under the high ratio of...
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