One of the main channels through which monetary policy stimulus affects the real economy is mortgage borrowing. This channel, however, is weakened by frictions in the mortgage market. The rapid growth of financial technology-based (FinTech) lending tends to ease these frictions, given the higher...

We show that social networks (Facebook connections) impact both the demand for and supply of consumer and small business loans originated on lending marketplaces. Loan demand increases substantially with past borrowing activities of geographically distant but socially connected areas, with an...

The paper investigates the role of network centrality in predicting borrowers' and lenders' behavior in peer-to-peer (P2P) lending. The empirical analysis of data from Renrendai, a leading lending platform in the People's Republic of China, reveals that the lenders who are at the center of a...

Various forms of social learning and network effects are at work on crowdfunding platforms, giving rise to informational and payoff externalities. We use novel entrepreneur-backer data to study how these externalities shape funding dynamics, within and across projects. We find that backers...

We employ a unique dataset on members of an elite service club in Germany to investigate how elite networks affect the allocation of resources. Specifically, we investigate credit allocation decisions of banks to firms inside the network. Using a quasi-experimental research design, we document...

We investigate the network structure of syndicated lending markets and evaluate the impact of lenders' network centrality, considered as measures of their experience and reputation, on borrowing costs. We show that the market for syndicated loans is a “small world” characterized by large...

We investigate the network structure of syndicated lending markets and evaluate the impact of lenders' network centrality, considered as measures of their experience and reputation, on borrowing costs. We show that the market for syndicated loans is a, “small world,” characterized by large...

We employ a unique dataset on members of an elite service club in Germany to investigate how social connections in elite networks affect the allocation of resources. Specifically, we investigate credit allocation decisions of banks to firms inside the network. Using a quasi-experimental research...

This paper investigates performance drivers of microfinance suppliers in Europe. As such suppliers, in contrast to advanced microfinance suppliers in developing economies, typically focus on uncollateralized microcredit services to individuals at the margins of society and of labor markets, we...