This paper studies how microfinance lenders with different profit orientations, namely non-profits and for-profits, design their lending contracts to extract borrower repayment in the context of rising competition among lenders. We develop a model of individual lending scheme where dynamic...

We measure the sensitivity of bank market values to capital and to regulatory adjustments applied to bank capital. Results for U.S. banks over the years 2001-2020 show that the sensitivity of banks’ market values to measures of bank capital e.g. book equity, Tier 1, and Total Capital,...

We investigate the role of private equity (PE) in the resolution of failed banks after the 2008 financial crisis. Using proprietary failed bank acquisition data from the FDIC combined with data on PE investors, we find that PE investors made substantial investments in underperforming and riskier...

This study examines whether the type of financial structure in the GCC influences the relationship between liquidity risk and banks' performance from 2007 to 2021. By employing fixed effects and fully modified ordinary least squares (FMOLS), we find that the impact of liquidity risk on bank...

Greater reliance on nonbank financing makes firms fragile as it leads banks to limit their access to credit lines. Besides demonstrating this result in panel tests subject to range of controls and robustness checks, we employ the 2014-16 oil-price collapse as an exogenous rollover risk in...

The main objective of this study is to test the impacts of lending by various types of financial institutions on poverty, employment, and new business startups. The study is based on seven equations estimated through the ordinary least squares (OLS) technique and censored TOBIT equations. These...

Finding new international suppliers is costly, so most importers source inputs from a single country. We examine the role of banks in mitigating trade search costs during the 2018-2019 U.S.-China trade tensions. We match data on shipments to U.S. ports with the U.S. credit register to analyze...

This paper examines how political leaders change moderates the impact of corporate political activity (CPA) on borrower discouragement, using a global dataset of 24,167 firms. While CPA generally reduces discouragement, its effectiveness is significantly diminished during political transitions,...

This paper explores how traditional banks perceive digital-only banks and the potential impact of digital-only banks on the retail segment of the banking sector. To obtain the main goal, we conducted in-depth semi-structured interviews with managers and directors representing different...