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How much of the heterogeneity in bank loan pricing is explained by disparities in banks’ attitude towards risk? The answer to this question is not simple because there are only very weak proxies for gauging the degree of a bank’s risk aversion. We handle this constraint by means of a novel...
Persistent link: https://www.econbiz.de/10013243821
loan officers' compensation, banks' use of soft information in credit approval, and their lending standards. When … more competition, banks lower lending standards, may choose to disregard soft and use only hard information in their credit …
Persistent link: https://www.econbiz.de/10013106196
We identify the effects of exogenous credit constraints on firm ability to attract and retain skilled workers. To do so … norms. Using bank-firm credit exposures that we match with a census of all Portuguese employees, we show that firms in a … likely to exit and less likely to join affected firms. Overall, credit market frictions might have long lasting effects on …
Persistent link: https://www.econbiz.de/10012871798
Multiple lending has been widely investigated from both an empirical and a theoretical perspective. Nevertheless, the implications of multiple lending for the stability of the banking system still need to be understood. By lending to a common set of borrowers, banks are interconnected and then...
Persistent link: https://www.econbiz.de/10012950803
effect of the reforms on overall credit supply, while at the same time documenting a substantial decline in borrower- and …
Persistent link: https://www.econbiz.de/10013315245
This study examines empirically the information content of the euro area Bank Lending Survey for aggregate credit and … leading indicator for euro area bank credit and real GDP growth. Notwithstanding the short history of the survey, the findings … also suggest that price as well as non-price conditions and terms of credit standards do matter for credit and business …
Persistent link: https://www.econbiz.de/10013316257
Loan guarantees represent a form of government intervention to support bank lending. However, their use raises concerns as to their effect on bank risk-taking incentives. In a model of •nancial fragility that incorporates bank capital and a bank incentive problem, we show that loan guarantees...
Persistent link: https://www.econbiz.de/10014257509
uncollateralized credit. We find that this kind of policy is more successful in suppressing equity price swings than moderating output …
Persistent link: https://www.econbiz.de/10013081636
) systems and central banks’ in-house credit assessment systems (ICASs) to investigate whether banks’ IRB ratings underestimate … the credit risk of their corporate loan portfolios when the latter are used as collateral in the Eurosystem’s monetary …
Persistent link: https://www.econbiz.de/10013217542
The purpose of this paper is to investigate the main drivers of the change in the credit risk provisions at a portfolio … drivers of the three-year projections of credit losses. First, we define a model containing all the macroeconomic variables … variables. Our results show that, although EBA variables explain most part of credit risk provisions, we obtain evidence about …
Persistent link: https://www.econbiz.de/10013299037