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Persistent link: https://www.econbiz.de/10011372430
A number of studies have pointed to various mistakes that consumers might make in their consumption-saving and financial decisions. We utilize a unique market experiment conducted by a large U.S. bank to assess how systematic and costly such mistakes are in practice. The bank offered consumers a...
Persistent link: https://www.econbiz.de/10010298314
where banks operate globally. Using U.S. micro-banking data for the first quarter of 2000 through the third quarter of 2013 … subsidiaries of foreign banks. Second, a foreign tightening of capital requirements shifts lending by U.S. global banks away from … regulation reduces lending by large U.S. global banks to foreign residents. …
Persistent link: https://www.econbiz.de/10011547676
where banks operate globally. Using U.S. micro-banking data for the first quarter of 2000 through the third quarter of 2013 … subsidiaries of foreign banks. Second, foreign tightening of capital requirements shifts lending by U.S. global banks away from the … reduces lending by large U.S. global banks to foreign residents …
Persistent link: https://www.econbiz.de/10011563197
We study a controlled experiment in which a bank's loan officers were incentivized based on originated loan volume to encourage prospecting for new business. While treated loan officers did attract new applications, both extensive and intensive margins of loan origination expanded ( 31% new...
Persistent link: https://www.econbiz.de/10009625941
We evaluate the effects of the 2009 Home Affordable Modification Program (HAMP) that provided intermediaries with sizeable financial incentives to renegotiate mortgages. HAMP increased intensity of renegotiations and prevented substantial number of foreclosures but reached just one-third of its...
Persistent link: https://www.econbiz.de/10009697769
When borrowers are delinquent, senior debtholders prefer liquidation whereas junior debtholders prefer to maintain their option value by delaying resolution or modifying the loan. In the mortgage market, a conflict of interest (“holdup”) arises when servicers of securitized senior liens are...
Persistent link: https://www.econbiz.de/10010353293
While the balance sheet structure of U.S. banks influences how they respond to liquidity risks, the mechanisms for the … effects on and consequences for lending vary widely across banks. We demonstrate fundamental differences across banks without … foreign affiliates versus those with foreign affiliates. Among the nonglobal banks (those without a foreign affiliate), cross …
Persistent link: https://www.econbiz.de/10010404088
The main rationale for policy intervention in debt renegotiation is to enhance such activity when foreclosures are perceived to be inefficiently high. We examine the ability of the government to influence debt renegotiation by empirically evaluating the effects of the 2009 Home Affordable...
Persistent link: https://www.econbiz.de/10010212760
international trade uncertainty on domestic credit supply. We exploit cross-sectional heterogeneity in banks' ex-ante exposure to … exposed banks assess their borrowers as riskier and reduce the maturity of their loans and a financial frictions channel by … which exposed banks facing relatively higher balance sheet constraints contract lending more. The decline in credit supply …
Persistent link: https://www.econbiz.de/10014436991