Similar Search Results

House Prices, Collateral and Self-Employment

Adelino, Manuel - 2014

This paper documents the role of the collateral lending channel to facilitate small business starts and self … startup capital and can thus more easily be financed out of increases in housing as collateral; (2) manufacturing industries …

Persistent link: https://www.econbiz.de/10013064399

International Capital Inflows, Domestic Financial Intermediation and Financial Crises Under Imperfect Information

Chinn, Menzie David; Kletzer, Kenneth - 2021

. This model generates dynamic relationships between foreign capital inflows, domestic investment and domestic bank debt in … accumulation of bank debt and increasing concentration of domestic lending and investment to the anticipation of contingent … domestic bank intermediation of foreign capital inflows under exchange rate pegs …

Persistent link: https://www.econbiz.de/10013248678

Overborrowing, Financial Crises and 'Macro-Prudential' Taxes

Bianchi, Javier - 2010

pecuniary externality, because private agents do not internalize how the price of assets used for collateral respond to … collective borrowing decisions, particularly when binding collateral constraints cause asset fire-sales and lead to a financial …

Persistent link: https://www.econbiz.de/10013142089

Banks, Short Term Debt and Financial Crises : Theory, Policy Implications and Applications

Diamond, Douglas W. - 2010

Short-term borrowing has often been blamed for precipitating financial crises. We argue that while the empirical association between a financial institution's, or country's, short-term borrowing and susceptibility to crises may, in fact, exist, the direction of causality is often precisely the...

Persistent link: https://www.econbiz.de/10012763305

The Design of Bank Loan Contracts, Collateral, and Renegotiation

Gorton, Gary - 2010

and collateral are crucial because they allow the bank to threaten the borrower and liquidate inefficient projects. We … capital and the level of investment. We argue that bank uniqueness is related to how the design of bank loan contracts allows … banks to affect borrowers' choice of project risk. Unlike corporate bonds, bank loans are typically secured senior debt …

Persistent link: https://www.econbiz.de/10012763460

Liquidity, Pledgeability, and the Nature of Lending

Diamond, Douglas W.; Hu, Yunzhi; Rajan, Raghuram Govind - 2022

We develop a theory of how corporate lending and financial intermediation change based on the fundamentals of the firm and its environment. We focus on the interaction between the prospective net worth or liquidity of an industry and the firm’s internal governance or pledgeability. Variations...

Persistent link: https://www.econbiz.de/10013404677

The Decline of Secured Debt

Benmelech, Efraim; Kumar, Nitish; Rajan, Raghuram Govind - 2022

The share of secured debt issued (as a fraction of total corporate debt) declined steadily in the United States over the twentieth century. This stems partly from financial development giving creditors greater confidence that high quality borrowers will respect their claims even if creditors do...

Persistent link: https://www.econbiz.de/10013324188

Collateral Pricing

Benmelech, Efraim - 2008

We examine how collateral affects the cost of debt capital. Theories based on borrower moral hazard and limited … pledgeable income predict that collateral increases the availability of credit and reduces its price. Testing these theories is … complicated by the very selection problem which they imply: creditors will demand collateral precisely from those borrowers who …

Persistent link: https://www.econbiz.de/10012772363

All Banks Great, Small, and Global : Loan Pricing and Foreign Competition

de Blas, Beatriz - 2010

effects from cross-border bank takeovers with those of cross-border lending by banks located overseas, which in most cases …

Persistent link: https://www.econbiz.de/10013142941

Communication within Banking Organizations and Small Business Lending

Levine, Ross - 2019

We investigate how communication within banks affects small business lending. Using travel time between a bank … evaluate the impact of within bank communication costs on small business loans. Consistent with Stein's (2002) model of the … transmission of soft information across a bank's hierarchies, we find that reducing headquarters-branch travel time boosts small …

Persistent link: https://www.econbiz.de/10012869574