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You are looking at 1-20 of 22 items for:

Banking x Information, Knowledge, and Uncertainy x clear all

The adverse selection problem in imperfectly competitive financial markets

Ville Mälkönen and Timo Vesala.

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...

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Bank Credit Cycles

G. B. Gorton and Ping He.

in The Review of Economic Studies

October 2008; p ublished online October 2008 .

Journal Article. Subjects: Information, Knowledge, and Uncertainy; Prices, Business Fluctuations, and Cycles; Banking. 16461 words.

A bank determines whether potential borrowers are creditworthy, that is, whether they meet the bank's credit or lending standards. In making this determination, each bank is in competition...

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Credit Line Usage, Checking Account Activity, and Default Risk of Bank Borrowers

Lars Norden and Martin Weber.

in The Review of Financial Studies

October 2010; p ublished online August 2010 .

Journal Article. Subjects: Household Behaviour and Family Economics; Information, Knowledge, and Uncertainy; Financial Institutions and Services; Banking; Corporate Governance. 14969 words.

Information on borrower quality is a fundamental issue in debt contracting, corporate and consumer finance, and financial intermediation. We investigate the link between account activity...

Distance and Modern Banks’ Lending to SMEs: Ethnographic Insights from a Comparison of Regional and Large Banks in Germany

Franz Flögel.

in Journal of Economic Geography

January 2018; p ublished online July 2017 .

Journal Article. Subjects: Banking; Information, Knowledge, and Uncertainy; Regional Government Analysis. 11075 words.

Abstract

By lending at a shorter functional distance, regional banks are associated with enhanced access to soft information compared with large banks, thus...

Does a Picture Paint a Thousand Words? Evidence from a Microcredit Marketing Experiment

Xavier Giné, Ghazala Mansuri and Mario Picón.

in The World Bank Economic Review

October 2011; p ublished online July 2011 .

Journal Article. Subjects: Banking; Production and Organizations; Information, Knowledge, and Uncertainy; Economic Development. 10995 words.

Female entrepreneurship is low in many developing economies partly due to constraints on women's time and mobility, often reinforced by social norms. We analyze a marketing experiment...

Estimating the Effect of Hierarchies on Information Use

Jose M. Liberti and Atif R. Mian.

in The Review of Financial Studies

October 2009; p ublished online January 2009 .

Journal Article. Subjects: Production and Organizations; Information, Knowledge, and Uncertainy; Banking; Corporate Governance. 15101 words.

Theory suggests that greater hierarchical distance between a subordinate and his boss makes it more difficult to share abstract and subjective information in decision making. A novel...

Getting Credit to High Return Microentrepreneurs: The Results of an Information Intervention

Suresh de Mel, David McKenzie and Christopher Woodruff.

in The World Bank Economic Review

October 2011; p ublished online May 2011 .

Journal Article. Subjects: Banking; Production and Organizations; Information, Knowledge, and Uncertainy; Economic Development. 11981 words.

Small-scale entrepreneurs typically cite access to finance as the most important constraint to growth. Recent randomized experiments have shown the return to capital to be very high for the...

Information, the Cost of Credit, and Operational Efficiency: An Empirical Study of Microfinance

Mark J. Garmaise and Gabriel Natividad.

in The Review of Financial Studies

June 2010; p ublished online April 2010 .

Journal Article. Subjects: Banking; Investment Banking; International Financial Markets; Economic Development; Information, Knowledge, and Uncertainy. 13354 words.

We provide direct evidence on the impact of asymmetric information on both financing and operating activities through a study of credit evaluations of microfinance institutions (MFIs). We...

Interbank Market Freezes and Creditor Runs

Xuewen Liu.

in The Review of Financial Studies

July 2016; p ublished online March 2016 .

Journal Article. Subjects: Economics; Banking; Information, Knowledge, and Uncertainy; Financial Markets. 22670 words.

We model the interplay between trade in the interbank market and creditor runs on financial institutions. We show that the feedback between them can amplify a small shock into “interbank...

Is the Market for Mortgage-Backed Securities a Market for Lemons?

Chris Downing, Dwight Jaffee and Nancy Wallace.

in The Review of Financial Studies

July 2009; p ublished online December 2008 .

Journal Article. Subjects: Information, Knowledge, and Uncertainy; Economics; Banking. 18440 words.

This paper models and provides empirical evidence for the quality of assets that are securitized through bankruptcy remote special purpose vehicles (SPVs). The model predicts that assets...

Lending Relationships and Information Rents: Do Banks Exploit Their Information Advantages?

Carola Schenone.

in The Review of Financial Studies

March 2010; p ublished online October 2009 .

Journal Article. Subjects: Information, Knowledge, and Uncertainy; Banking; Investment Banking; Corporate Governance. 21298 words.

In the process of lending to a firm, a bank acquires proprietary firm-specific information that is unavailable to nonlenders. This asymmetric evolution of information between lenders and...

Lending Relationships and Loan Contract Terms

Sreedhar T. Bharath, Sandeep Dahiya, Anthony Saunders and Anand Srinivasan.

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....

Liquidity Flows in Interbank Networks

Fabio Castiglionesi and Mario Eboli.

in Review of Finance

July 2018; p ublished online May 2018 .

Journal Article. Subjects: Information, Knowledge, and Uncertainy; Banking. 21001 words.

Abstract

This article characterizes the interbank deposit network as a flow network that is able to channel liquidity flows among banks. These flows are...

Loan Prospecting

Florian Heider and Roman Inderst.

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-Based Corrective Actions

Philip Bond, Itay Goldstein and Edward Simpson Prescott.

in The Review of Financial Studies

February 2010; p ublished online September 2009 .

Journal Article. Subjects: Financial Markets; Information, Knowledge, and Uncertainy; Economics; Banking; Financial Regulation; Mergers and Acquisitions. 23492 words.

Many economic agents take corrective actions based on information inferred from market prices of firms’ securities. Examples include directors and activists intervening in the management of...

Optimal Leverage Ratio and Capital Requirements with Limited Regulatory Power

Ho-Mou Wu and Yue Zhao.

in Review of Finance

October 2016; p ublished online February 2016 .

Journal Article. Subjects: Banking; Financial Regulation; Information, Knowledge, and Uncertainy. 12380 words.

This article discusses the optimal leverage ratio and capital requirements when asymmetric information exists between the bank and the regulator. We show that the optimal requirements take...

Preventing Zombie Lending

Max Bruche and Gerard Llobet.

in The Review of Financial Studies

March 2014; p ublished online October 2013 .

Journal Article. Subjects: Banking; Financial Regulation; Information, Knowledge, and Uncertainy. 17186 words.

Because of limited liability, insolvent banks have an incentive to continue lending to insolvent borrowers, in order to hide losses and gamble for resurrection, even though this is socially...

Relationship Banking, Fragility, and the Asset-Liability Matching Problem

Fenghua Song and Anjan V. Thakor.

in The Review of Financial Studies

November 2007; p ublished online January 2007 .

Journal Article. Subjects: Banking; Financial Regulation; Information, Knowledge, and Uncertainy. 21449 words.

We address a fundamental question in relationship banking: why do banks that make relationship loans finance themselves primarily with core deposits and when would it be optimal to finance...

Securitization and Lending Competition

David M. Frankel and Yu Jin.

in The Review of Economic Studies

October 2015; p ublished online March 2015 .

Journal Article. Subjects: Information, Knowledge, and Uncertainy; Economics; Banking. 13579 words.

We study the effects of securitization on interbank lending competition. An applicant's observable features are seen by a remote bank, while her true credit quality is known only to a local...

Spillovers in Local Banking Markets

Mark J. Garmaise and Gabriel Natividad.

in The Review of Corporate Finance Studies

September 2016; p ublished online July 2016 .

Journal Article. Subjects: Banking; Information, Knowledge, and Uncertainy; Financial Regulation; Housing Markets, Production Analysis, and Business Location. 11153 words.

How are neighboring firms affected when a bank learns more about a given firm? We analyze exchange-rate-induced movements of Peruvian firms across a threshold that governs their regulatory...