Personal bankruptcy and credit market competition
The effect of credit market competition on borrower default is theoretically ambiguous, because the quantity of credit supplied may rise or fall following an increase in competition. We investigate empirically the relationship between credit market competition, lending to households, and personal bankruptcy rates in the United States. We exploit the exogenous variation in market contestability brought on by banking deregulation at the state level: after deregulation, banks faced the threat of entry into their state markets. We find that deregulation increased competition for borrowers, ...
Strategic pricing of payday loans: evidence from Colorado, 2000-2005
SMEs and bank lending relationships: the impact of mergers
This paper studies the impact of bank mergers on firm-bank lending relationships using information from individual loan contracts in Belgium. We analyze the effects of bank mergers on the probability of borrowers maintaining their lending relationships and on their ability to continue tapping bank credit. The Belgian financial environment reflects a number of interesting features: high banking sector concentration; ?in-market? mergers with large target banks; importance of large banks in providing external finance to SMEs; and low numbers of bank lending relationships maintained by SMEs. ; We ...
A re-examination of the role of relationships in the loan-granting process
We reexamine the role of relationships in the loan granting process overall. A practical implication emerging from the classical studies on the role of relationships in credit rationing is that good relationships between a borrower and his lender should, in fact, work to lower the interest rate charged to the borrower. We test this implication in our paper using a robust sample selection methodology that explicitly accounts for the entire fabric of the loan granting process, including a borrower?s decision to apply to the bank for a loan (or not), whether a bank approves the application for a ...
Making regulation work for consumers and banks
Consumer lending at community banks
Scale economies at payday loan stores
Evidence of bank information monopolies across the business cycle