This paper examines the effect of competition on bank stability particularly the contagion effect in rural banking market using spatial panel econometrics methodology. We obtain quarterly data from 2014 to 2017 focusing in a single country, Indonesia, as it has the largest number of rural banks...

We compare mortgage lenders’ credit decisions to algorithmic recommendations – on the same set of loan applications – from widely used Automated Underwriting Systems (AUS) to assess discrimination. In 2018-19, lenders were more likely to deny minority applicants than non-Hispanic white...

This paper examines the herd behavior of regional banks during financial fluctuations using loan data on Japanese banks from the 1980s to the 1990s. We use the herding measure developed by Lakonishok, Shleifer, and Vishny (1992) and Uchida and Nakagawa (2007) to detect evidence of herding and...

Recent years have seen a sharp rise in the number of negative equity homeowners - those who owe more on their mortgages than their houses are worth. These homeowners are included in the official homeownership rate computed by the Census Bureau, but the savings they must amass to retain their...

We use data from credit reports and deed records to better understand the extent to which second liens contributed to the housing crisis by allowing buyers to purchase homes with small down-payments. At the top of the housing market, second liens were quite prevalent: As many as 45 percent of...

This paper analyzes the relationship between changes in borrowers' monthly mortgage payments and future credit performance. This relationship is important for the design of an internal refinance program such as the Home Affordable Refinance Program (HARP). We use a competing risk model to...

This note critically discusses the possible endogenous problems that microfinance sector in Bangladesh should seriously take into account. It also draws possible explanations and/or consequences of these factors. The broad understanding is that the sector should emphasize credit plus programs,...

Recent years have seen growth in the use of certain types of nontraditional lending products, such as payday lending and auto title lending, and a relative decline of others, such as finance companies and pawnbrokers. Congress is currently considering major new regulations on short-term lending...

After rising for a decade, the U.S. homeownership rate peaked at 69 percent in the third quarter of 2006. Over the next two and a half years, as home prices fell in many parts of the country and the unemployment rate rose sharply, the homeownership rate declined by 1.7 percentage points. An...

The majority of people in Sub-Saharan Africa does not have a basic bank account and are financially excluded from main stream financial services. This paper examines factors that drive geographic exclusion of banking services to rural communities and households' demand for a basic bank account...