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He, Zhiguo; Li, Jian - 2021

degree of credit/maturity transformation. We develop a dynamic model in which an entrepreneur borrows from overlapping …-generation households via layers of funds, forming a credit chain. Each intermediary fund in the chain faces rollover risks from its lenders …. We show that the equilibrium chain length minimizes the run risk for any given contract and find that restricting credit …

Persistent link: https://www.econbiz.de/10013314682

Modeling of cash flows from nonperforming loans in a commercial bank

Devjak, Srečko - In: Naše gospodarstvo : NG 64 (2018) 4, pp. 3-9

The purpose of this paper is to derive a model for calculation of maturities and volumes of repayments that a bank may expect from nonretail nonperforming loans (hereafter NPLs). Expected inflows from nonretail NPLs follow a probability distribution, defined by size and timing of historic...

Persistent link: https://www.econbiz.de/10012021720

Debt restructuring with multiple bank relationships

Baglioni, Angelo; Colombo, Luca; Rossi, Paola - 2019

When the debt of firms in distress is dispersed, a restructuring agreement is difficult to reach because of free riding. We develop a repeated game in which banks come across each other frequently, allowing them to threaten a punishment in case of free riding. As the number of lending banks...

Persistent link: https://www.econbiz.de/10011962128

Benign neglect of covenant violations : blissful banking or ignorant monitoring?

Colonnello, Stefano; Koetter, Michael; Stieglitz, Moritz - 2019

tightening of credit terms when firms experience shocks. …

Persistent link: https://www.econbiz.de/10011960127

How Does Lender Health Affect Covenant-Violating Borrowers?

Ao, MingMing - 2020

Using the Emerging Market Debt Crises of the late 1990s, a shock that directly impacted some U.S. banks but not their domestic borrowers, we study the causal impact of lender health on covenant-violating borrowers. Using difference-in-differences, we find that banks exposed to the crises become...

Persistent link: https://www.econbiz.de/10012848722

Does Banking Competition Really Increase Credit for All? The Effect of Bank Branching Deregulation on Small Business Credit

Lynch, John - 2022

declined by 5.4% and remained lower for several years. The decline in credit supply eventually led to a decrease in the number … credit supply shocks can have persistent adverse effects on labor …

Persistent link: https://www.econbiz.de/10013405115

Intermediary-Based Loan Pricing

Mabille, Pierre; Wang, Olivier - 2021

drive the dynamic incidence of credit crises through impact and persistence …

Persistent link: https://www.econbiz.de/10013311061

Does Banking Competition Really Increase Credit for All? The Effect of Bank Branching Deregulation on Small Business Credit

Lynch, John - 2023

Persistent link: https://www.econbiz.de/10014255173

Modelling the Probability of Asset Value Covenant Violations in Shipping Bank Loans

Kagkarakis, Nikos; Tsouknidis, Dimitris A. - 2023

This paper aims to model the probability of a borrower violating an asset value covenant in a shipping bank loan agreement, where the main collateral (the vessel) exhibits very high price volatility. We estimate a logistic regression model on the largest dataset of shipping bank loans examined...

Persistent link: https://www.econbiz.de/10014260886

Using bank loans as collateral in Europe : the role of liquidity and funding purposes

Koulischer, François; Van Roy, Patrick - 2017

We show that illiquid assets such as bank loans are used by euro area banks both as central bank collateral for short-term liquidity insurance purposes and for longer-term funding purposes for issuing covered bonds or asset-backed securities. We then explore the determinants of the choice of...

Persistent link: https://www.econbiz.de/10011635012