The adverse selection problem in imperfectly competitive financial markets
in Oxford Economic Papers
October 2013; p ublished online November 2012 .
Journal Article. Subjects: Information, Knowledge, and Uncertainy; Banking; Market Structure, Firm Strategy, and Market Performance; Market Structure and Pricing. 5695 words.
We show that two horizontally differentiated banks can implement separating equilibria in markets for bank loans by using non-linear price schedules. The optimal strategies of the banks...
Go to » abstract
Competitive microcredit markets: differentiation and ex ante incentives for multiple borrowing
in Oxford Economic Papers
October 2015; p ublished online July 2015 .
Journal Article. Subjects: Nonprofit Organizations and Public Enterprise; Banking; Economic Development; Market Structure, Firm Strategy, and Market Performance. 9162 words.
I analyse an oligopolistic microcredit market characterized by asymmetric information on the riskiness of borrowers. I study the effects of competition when, due to the absence of credit...
Distance and Private Information in Lending
in The Review of Financial Studies
July 2010; p ublished online April 2010 .
Journal Article. Subjects: Banking; Market Structure, Firm Strategy, and Market Performance; Market Structure and Pricing. 13892 words.
We study the effects of physical distance on the acquisition and use of private information in informationally opaque credit markets. Using a unique data set of all loan applications by...
Does the Market Understand Rating Shopping? Predicting MBS Losses with Initial Yields
in The Review of Financial Studies
February 2016; p ublished online November 2015 .
Journal Article. Subjects: Banking; Investment Banking; Financial Regulation; Economics; Market Structure, Firm Strategy, and Market Performance. 13672 words.
We study rating shopping on the MBS market. Outside of AAA, losses are higher on single-rated tranches than on multi-rated ones, and yields predict future losses for single-rated tranches,...
The fat years: the structure and profitability of the US banking sector in the pre-crisis period
in Cambridge Journal of Economics
July 2009; p ublished online July 2009 .
Journal Article. Subjects: Mergers and Acquisitions; Economic Development; Banking; Market Structure, Firm Strategy, and Market Performance; Market Structure and Pricing. 10012 words.
Bank profitability in the USA was extremely high in the pre-crisis period, yet this did not prevent the current crisis. It has become clear that these profits were on shaky grounds and also...
Go to » abstract
Harming Depositors and Helping Borrowers: The Disparate Impact of Bank Consolidation
in The Review of Financial Studies
January 2009; p ublished online May 2008 .
Journal Article. Subjects: Banking; Financial Regulation; Mergers and Acquisitions; Market Structure, Firm Strategy, and Market Performance. 18167 words.
A model of multimarket spatial competition is developed where small, single-market banks compete with large, multimarket banks (LMBs) for retail loans and deposits. Consistent with...
HIGH MORTGAGE RATES IN THE LOW COUNTRIES: WHAT HAPPENED IN THE SPRING OF 2009?
in Journal of Competition Law & Economics
December 2014; p ublished online November 2014 .
Journal Article. Subjects: Antitrust Issues and Policies; Banking; Market Structure, Firm Strategy, and Market Performance. 6831 words.
Since the spring of 2009, Dutch mortgage rates have been structurally high, both in comparison to the rest of Europe and to funding costs. This article reviews the debate on possible...
Information Sharing and Information Acquisition in Credit Markets
in Review of Finance
July 2014; p ublished online August 2013 .
Journal Article. Subjects: Banking; Market Structure, Firm Strategy, and Market Performance. 10175 words.
We examine the effect of information sharing via credit bureaus or credit registers on banks’ incentives to collect information about their borrowers. Information asymmetries have been...
Go to » abstract
Interbank networks in prewar Japan: structure and implications
in Industrial and Corporate Change
April 2012; p ublished online August 2011 .
Journal Article. Subjects: History of Financial Markets and Institutions; Mergers and Acquisitions; Firm Objectives, Organization, and Behaviour; Banking; Market Structure, Firm Strategy, and Market Performance. 14310 words.
In this article, we explore the structure and implications of interbank networks in prewar Japan, focusing on director interlocking. We find that approximately half the banks had at least...
Go to » abstract
Lending Relationships and Loan Contract Terms
in The Review of Financial Studies
April 2011; p ublished online October 2009 .
Journal Article. Subjects: Information, Knowledge, and Uncertainy; Corporate Governance; Financial Institutions and Services; Banking; Investment Banking; Market Structure, Firm Strategy, and Market Performance; History of Financial Markets and Institutions. 30361 words.
We find that repeated borrowing from the same lender translates into a 10–17 bps lowering of loan spreads and that relationships are especially valuable when borrower transparency is low....
Loan Prospecting
in The Review of Financial Studies
August 2012; p ublished online July 2012 .
Journal Article. Subjects: Information, Knowledge, and Uncertainy; Banking; Market Structure, Firm Strategy, and Market Performance. 15459 words.
We analyze corporate lending when loan officers must be incentivized to prospect for loans and to transmit the soft information they obtain in that process. We explore how this multi-task...
MARKET STRUCTURE AND INTENSITY OF PRICE COMPETITION IN EU BANKING
in Journal of Competition Law & Economics
June 2015; p ublished online April 2015 .
Journal Article. Subjects: Antitrust Issues and Policies; Banking; Market Structure, Firm Strategy, and Market Performance. 4224 words.
This article analyzes both determinants of market structure and the intensity of price competition in the European Union (EU) banking industry. For this purpose, the first part of the...
Monetary Policy, Risk-Taking, and Pricing: Evidence from a Quasi-Natural Experiment
in Review of Finance
March 2015; p ublished online September 2014 .
Journal Article. Subjects: Money and Interest Rates; Monetary Policy, Central Banking, and the Supply of Money and Credit; Economics; Banking; Financial Regulation; Market Structure, Firm Strategy, and Market Performance. 17902 words.
We study the risk-taking channel of monetary policy in Bolivia, a dollarized country where monetary changes are transmitted exogenously from the USA. We find that a lower policy rate spurs...
Mortgage Loan Flow Networks and Financial Norms
in The Review of Financial Studies
September 2018; p ublished online August 2017 .
Journal Article. Subjects: Banking; Economics; Market Structure, Firm Strategy, and Market Performance. 20540 words.
Abstract
We develop a theoretical model of a network of intermediaries whose optimal behavior is jointly determined, leading to heterogeneous financial norms...
NOTES ON THE MARGIN: AN OVERVIEW OF NMA'S MORTGAGE MARKET STUDY
in Journal of Competition Law & Economics
December 2014; p ublished online November 2014 .
Journal Article. Subjects: Antitrust Issues and Policies; Banking; Market Structure, Firm Strategy, and Market Performance. 5608 words.
This article presents the findings of a sector study conducted by the Netherlands Competition Authority on the Dutch mortgage market. Following the outbreak of the financial crisis, the...
The “Dominant Bank Effect:” How High Lender Reputation Affects the Information Content and Terms of Bank Loans
in The Review of Financial Studies
July 2010; p ublished online January 2010 .
Journal Article. Subjects: Banking; Market Structure, Firm Strategy, and Market Performance. 12066 words.
Three large banks control over half of the U.S. commercial loan market by volume through the syndication process. Using attributes of a borrower’s location to instrument for lender–...
What does excess bank liquidity say about the loan market in Less Developed Countries?
in Oxford Economic Papers
January 2010; p ublished online May 2009 .
Journal Article. Subjects: Market Structure, Firm Strategy, and Market Performance; Banking; Monetary Policy, Central Banking, and the Supply of Money and Credit; Economic Development. 7602 words.
Evidence about commercial banks’ liquidity preference says the following about the loan market in less developed countries (LDCs): (i) the loan interest rate is a minimum mark-up rate; (ii)...
Go to » abstract
