BanK Lending Research Papers - Academia.edu (original) (raw)

We empirically investigate the determinants of lenders concentration providing bank loans to European borrowers. We analyze the influence of loan and borrower characteristics but also legal enforcement variables that are expected to... more

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- Asymmetric Information, BanK Lending, Agency Costs, Financial intermediation

This paper proposes an analytical framework to examine the role of public debt in …nancial development, which remains largely unexplored in the existing literature. We …nd that in countries where the banking sector extends substantial credit to government, public debt is likely to harm …nancial development, with unfavourable implications for economic activity. As such, our results provide an alternative explanation for the 'contractionary …scal expansions'. We also show that the lower the …nancial depth, the greater the adverse e¤ects of public borrowing on …nancial development and macroeconomic outcomes.

- by Gulcin Ozkan
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- Economics, Financial development, Applied Economics Letters, Public Debt

This study uses the metaphor of a financial mission to explore how World Bank lending practices contribute to the globalization of financial practice. Through the use of interviews with key participants and archival documents pertaining to a World Bank education project in Latin America, we analyze how financial/accounting practices came to be diffused to this particular site. The study highlights not only how Bank lending practices attempt to implant accounting practices and discourses into distant fields but also the slippage, accommodation and resistance that is inherent in these attempts to change the habitus of such fields.

- by dean neu
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- Latin America, BanK Lending

This paper examines the relationship between international capital flows and the opacity of recipient countries. We use Price Waterhouse Coopers (PWC) (2001) opacity index for the year 2000 and investigate its influence on three types of net international capital flows: foreign direct investment, portfolio capital and international bank lending. We find support for higher opacity leading to a reduction in capital inflows, in general. More interestingly, however, in some cases we find counterintuitive results of more capital flows when opacity relating to specific business climate increases-accounting and regulations for foreign direct investment flows, corruption and regulation for portfolio flows, and corruption and economic opacities for international lending flows. This may be because of potentially higher profit opportunities that may be present due to the greater role unofficial channels of investment practices play as these opacity indices rise. Also, we find international bank lending, in general, responded very differently from foreign direct investment and portfolio flows.

- by VINCENT HOOPER
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- Econometrics, Foreign Direct Investment, Capital Flows, Applied Economics

The Centre for Planning and Economic Research (KEPE) was established as a research unit, under the title Centre of Economic Research, in 1959. Its primary aims were the scientific study of the problems of the Greek economy, the... more

- by Prodromos Vlamis
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- Real Estate, Financial System, Banking Crisis, BanK Lending

Prior to the recent financial crisis, one of the most prominent examples of unconventional monetary stimulus was Japan's "quantitative easing policy"(QEP). Most analysts agree that QEP did not succeed in stimulating aggregate demand sufficiently to overcome persistent deflation. However, it remains unclear whether QEP simply provided little stimulus, or whether its positive effects were overwhelmed by the contractionary forces in Japan's post-bubble economy. In the spirit of and Hosono , this paper uses bank-level data from 2000 to 2009 to examine the effectiveness in promoting bank lending of a key element of QEP, the Bank of Japan's injections of liquidity into the interbank market. We identify a robust, positive, and statistically significant effect of bank liquidity positions on lending, suggesting that the expansion of reserves associated with QEP likely boosted the flow of credit. However, the overall size of that boost was probably quite small. First, the estimated response of lending to liquidity positions in our regressions is small. Second, much of the effect of the BOJ's reserve injections on bank liquidity was offset as banks reduced their lending to each other. Finally, the effect of liquidity on lending appears to have held only during the initial years of QEP, when the banking system was at its weakest; by 2005, even before QEP was abandoned, the relationship between liquidity and lending had evaporated.

- by Steven Kamin
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- BanK Lending, Banking system
- by Omar Al Nasser
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- Monetary Economics, Economic Theory, Financial Markets, Applied Economics
- by Hans Dieter Seibel
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- Financial management, Self Help Group, Financial Institutions, Profitability

The significant rise in foreign bank claims observed during the 1990s, following their steep decline during the 1980s debt crisis, reignited interest in understanding the behavior of these flows. This paper analyzes changes in foreign bank claims on the Latin American private sector over the period [1985][1986][1987][1988][1989][1990][1991][1992][1993][1994][1995][1996][1997][1998][1999][2000]. We find that banks transmit shocks from their home countries (where banks' headquarters are located) and that changes in claims on individual host countries (those that receive claims) are correlated with aggregate changes in claims on other countries. However, over time, we observe that foreign bank claims have become less responsive to external factors. Also, we present evidence that the sensitivity of foreign bank claims to host factors diminishes, as banks' aggregate exposure rises. Finally, we find that foreign bank claims react more to positive than to negative host shocks and are not significantly curtailed during crises. [JEL G21, N26] *The authors are affiliated with the World Bank, Universidad Torcuato di Tella, and International Monetary Fund, respectively. The authors thank the Bank for International Settlements for providing us data and, in particular, Jesper Wormstrup at this institution for answering many questions on this data set. We are grateful for comments and suggestions from

- by Andrew Powell
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- Economic Theory, Applied Economics, Financial Crisis, Latin America
- by Luis Molina
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- Capital Flows, Case Study, BanK Lending, Empirical Analysis

This paper uses a unique data set of 542 distressed English firms, typically small to medium-sized, to analyse how banks restructure distressed firms, both inside and outside bankruptcy. The study provides an opportunity to examine a contract-based bankruptcy process, with lenders and borrowers relying on the bankruptcy procedures written into the debt contract by the contracting parties. In this contract setting the courts are largely uninvolved.

- by Julian Franks
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- Finance, Financial Distress, BanK Lending

This paper provides a systematic empirical study of the role of credit market frictions in the transmission of monetary shocks. First, using macro data for a developing economy (Pakistan), we show that banking spreads are countercyclical, even when we control for credit risk, monetary policy and potential maturity mismatches. Moreover, we find that this anticyclical nature is accentuated in the

- by Vasco Gabriel
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- Emerging Economies, Monetary Policy, Credit Risk, BanK Lending

To evaluate loan applicants, banks increasingly use credit scoring models. The objective of such models typically is to minimize default rates or the number of incorrectly classified loans. Thereby they fail to take into account that loans are multiperiod contracts for which reason it is important for banks not only to know if but also when a loan will default. In this paper a bivariate Tobit model with a variable censoring threshold and sample selection effects is estimated for (1) the decision to provide a loan or not and (2) the survival of granted loans. The model proves to be an effective tool to separate applicants with short survival times from those with long survivals. The bank's loan provision process is shown to be inefficient: loans are granted in a way that conflicts with both default risk minimization and survival time maximization. There is thus no trade-off between higher default risk and higher return in the lending policy.

- by Kasper Roszbach
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- Econometrics, Credit Scoring, Applied Economics, Default Risk

The reports seem contradictory. With about three billion dollars per year in new loan commitments, the World Bank has become the single largest source of development capital in the field of international education. These resources help expand educational opportunities for young women in South Asia and rebuild primary schools following civil conflict in Sub-Saharan Africa. They support textbooks, school meals, new curriculum, and teacher training in thousands, perhaps hundreds of thousands, of locations in over 100 countries in six regions.

The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and... more

- by Jaromir Benes
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- Moral Hazard, Bank Capital, Bank Runs, Capital

Using innovation accounting in a structural vector autoregressive model, it is established that monetary authorities in Malawi employ hybrid operating procedures and pursue both price stability and high growth and employment objectives. Two operating targets of monetary policy are identified, viz., bank rate and reserve money, and it is demonstrated that the former is a more effective measure of monetary policy than the latter.

- by Harold Ngalawa
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- Economics, Monetary Policy, BanK Lending, Exchange rate

This paper investigates whether monetary policy (minimum rediscount rates, currency outside banks, net domestic credit, demand deposit and exchange rate) and commercial bank lending can provide a convincing explanation for monetary inflation in Nigeria, over the period 1980-2010. The analyses are performed using data derived from the central bank statistical bulletin of Nigeria. This period was selected on account that it marks the beginning of indirect monetary policy regime in Nigeria. Applying the ADF to determine the stationary state of our data, the result shows that all the variables are not stationary at their level but at first difference. As such we apply the Vector Auto Regression (VAR) technique to determine the effects of monetary policy and bank lending on inflation. Therefore, a co-integration test was carried out to test the existence of a long run relationship in our data. Our findings show that monetary policy and bank lending rate do affect inflation partially. The paper also reveals that exchange rate has a little or negligible insignificantly effects on inflation. Therefore, the conclusion from our paper is that monetary policy and commercial bank lending inflation can provide partial explanation effects of inflation rate in Nigeria economy.

- by Ernest Simeon Odior
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- Economics, Macroeconomics, Monetary Policy, Inflation

Empirical evidence suggests that capital-market constraints prevent low-wealth individuals from setting up in business. This paper shows this ®nding to be consistent with socially excessive lending and an interest-rate tax being welfare-improving. One feature of the model, banks' inability to identify entrepreneurial quality, leads to excessive bank lending and investment in low-return projects. The reduction in the probability of bankruptcy lowers the cost of borrowing and eliminates deadweight costs and hence promotes entry. If the incentive effects are suf®ciently large, wealth and the volume of entrepreneurial activity move together. A key result of the paper is to show that a market equilibrium in which there is a positive relationship between entry and the level of wealth is consistent with either subsidies to inactivity or taxes on interest raising welfare.

- by David Meza
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- Economics, BanK Lending, Empirical evidence, Interest Rate

This study examines the impact of bank credit to the private sector on economic growth in Bangladesh from supply side perspectives. The study has applied Johansen co-integration approach and Error Correction Model using the time series data for the period of 1980-2015. Based on the sample data and methodology, we found that there is a positive long run relationship between real private sector credit and real GDP. More specifically private sector credit can alone explain 40 percent of variation of GDP in the long run in Bangladesh. But in short run, real GDP adjusts toward the equilibrium path once the system is shocked. However, in the short run, the adjustment path of real private sector credit to maintain the long run relationship is somewhat opposite towards equilibrium. This means that in the short run, changes in real private sector credit cannot contribute positively to restore the long run relationship if there is an imbalance in the system. So, private sector credit should be considered cautiously and given priority to productive sectors as unnecessary or unproductive credit to private sector unable to play

- by Mohammad Masuduzzaman
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- Economic Growth, Bangladesh, Bangladesh Studies, Cointegration

This paper investigates the existence of cross-sectional differences in the response of lending to monetary policy and GDP shocks owing to differences in bank capitalization. It adds to the literature by using the excess capital-to-asset ratio, which can better control the riskiness of banks' portfolios, and by disentangling the effects of the "bank lending channel" from those of the "bank capital channel." The results, based on a sample of Italian banks, indicate that bank capital matters in the propagation of different types of shocks to lending, owing to the existence of regulatory capital constraints and imperfections in the market for bank fund-raising.

- by Leonardo Gambacorta
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- Monetary Policy, Bank Capital, BanK Lending, Cross Section

This study investigates the determinants of adjustments in the provision of cross-border loans by internationally active banks. For the period from 2002 to 2010, we look at quarterly transaction data (excluding valuation effects) on long-term loans issued by the largest 69 German banking groups to the private sector of 66 countries. We show that the parent bank's lending adjustment is

- by Rainer Frey
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- Financial Crisis, Risk Aversion, BanK Lending, Private Sector
- by Roman Kräussl
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- Econometrics, Empirical Finance, Monte Carlo, Risk Management
- by Angela Maddaloni and +4
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- Risk Management, Financial Reporting, Fair value accounting, Financial Regulation

The 'globalization' of economic activity and the governance issues it raises are often thought to have appeared only after the Second World War, and particularly during the 1960s. The post-1960s era saw the emergence of MNC activity on the one hand and the rapid growth of international trade on the other. Subsequently, with the col- lapse of the Bretton Woods semi-fixed exchange rate regime in the 1971-3 period, the expansion of international securities investment and bank lending began in earnest as capital and particularly money markets rapidly internationalized, adding to the com- plexity of international economic relations and heralding what is often thought to be the genuine globalization of an integrated and interdependent world economy. In this chapter we scrutinize this popular history and trace the main periods of the inter- nationalization of economic activity, which will be shown to have developed in a cyclical and uneven fashion. The key issue at stake in our a...

- by Grahame Thompson
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- International Trade, BanK Lending, Exchange rate regime, COL

This Working Paper should not be reported as representing the views of the IMF.

- by Gudrun Johnsen and +1
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- Financial Systems, Financial Markets, Internal Control, Financial System

This paper investigates possible non-linearities in the response of bank lending to monetary policy shocks in the euro area. The credit market is modelled over the period 1985-2005 by means of an Asymmetric Vector Error Correction Model (AVECM) involving four endogenous variables (loans to the private sector, real GDP, lending rate, and consumer price index) and one exogenous variable (money market rate). The main features of the model are the existence of two cointegrating equations representing the long-run credit demand and supply and the possibility for loading and lagged term coefficients to assume different values depending on the monetary policy regime (easing or tightening). The paper finds that the effect on credit, GDP and prices of a monetary policy tightening is larger than the effect of a monetary policy easing. This result supports the existence of an asymmetric broad credit channel in the euro area.

- by Carlotta Rossi and +1
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- Applied Economics, Monetary Policy, The mortgage channel of monetary policy transmission, Euro Area
- by Peter Winker
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- Monetary Policy, BanK Lending

- by D. Igan
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- Fiscal policy, Retail Banking, Applied Economics, Monetary Policy

This study analyses bank lending in the larger context of bank-firm relations within the Bulgarian specificity of currency board. It focuses on the 'intersection' of credit supply and demand on the side of banks and firms simultaneously. We suggest both traditional and new hypotheses corresponding to the specific conditions of the Bulgarian ownership change, transitional corruption and other institutional and political factors. The model is based on a survey on Bulgarian banks and a unique database on firms. The study found that the dynamics and structure of credit is affected mainly by the features of the institutional environment, whereas the 'resource' and traditional factors became secondary. During the period 1998 -2001, there is separation of the banking sector activity from the activity of the real sector in Bulgaria. In the new conditions of currency board, the dual sector of enterprises and the specific institutional environment continue their existence. Despite its disciplining effect the currency board by itself is not sufficiently effective to overcome the remaining 'institutional obstacles, associated mainly with the inefficiency of the judicial system, corruption, state capture, uncertain property rights, etc.

- by Todor Yalamov
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- Property Rights, Corporate Governance, Institutional Environment, BanK Lending

In this paper we empirically study bank-client relationships using a sample of manufacturing Chilean firms. We examine whether concentration and the duration of bank-firm relationships affect the terms of bank financing, evaluating both the volume of bank lending and bank loan costs. Our results indicate that lower concentration, measured by the number of banks a firm borrows from, is associated

- by Andrea Repetto
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- Relationship Banking, BanK Lending, Empirical Study, DOCUMENTOS DE TRABAJO SOCIAL

Fax: +41 61 / 280 91 00 and +41 61 / 280 81 00

- by João Santos
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- BanK Lending, Trade Credit, Financial intermediation, Duration Analysis
- by Aigbe Akhigbe
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- Applied Economics, Profitability, Business Model, Relationship Banking

Abstract: Aggregate loan development typically hinges on a combination of factors that impact simultaneously on the demand and the supply side of bank lending. The financial turmoil starting in mid-2007 had detrimental consequences for... more

- by Hannah Hempell
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- Panel Data, Financial Crisis, Euro Area, Negative Affect

In this paper we construct a theoretical model of spatial banking competition that
considers the differential information among banks and potential borrowers in
order to investigate how market structure affects the lending behavior of banks and
their incentives to invest in screening technology. Consistent with the prevailing
view in the relevant literature, our results reveal that competition reduces lending
cost, which, in turn, encourages the entry of new customers in the loan market.
Also, that the transportation cost that potential borrowers have to pay in order to
reach the bank of their interest is decreased with the degree of competitiveness.
Importantly, we demonstrate that market structure exerts a considerable positive
effect on banks’ incentives to screen their loan applicants since banks are found to
invest more in screening as competition in the market becomes higher. This is to
say, banks resort to screening that serves as a buffer mechanism against bad credit
which entails higher risk and which is more likely under competitive conditions.
Overall, our findings provide support to a rather close link between the degree of
competition, bank lending activity, and the investment of banks in screening
technology.

- by Nikolaos I. Papanikolaou
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- Banking, Market Structure, Screening, BanK Lending

This paper attempts to summarise a number of the ideas from a current, Gramscian-inspired research project on the form and nature of World Bank's 2 shift away from the Washington Consensus, which the World Bank publicly and loudly claimed to have achieved by 1997. The Bank's new approach was labelled by critical academics as the post-Washington Consensus (PWC) because their analyses of the policies and rhetoric indicate a continued commitment to the core ideas of the Washington Consensus. My research explores not just the Bank's underlying development discourse but also the practical consequences of the new themes and ideas of the PWC as they are played out in the Bank's lending program. I do this via case studies of Bank lending in two countries: Vietnam and Indonesia. The case studies examine all loans to these countries in two periods: 1993-1997 to equate to the Washington Consensus period; and 2000-2004 for the PWC. The case studies form the basis of some con...

- by Susan Engel
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- Neoliberalism, Vietnam, World, Consensus

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- by Kasper Roszbach
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- Applied Mathematics, Credit Scoring, Credit Risk, Sample Selection Bias

The global financial crisis in 2008 has affected economies in many aspects. Besides the devastating effects of the crisis on banks, expansionary policies have been revived in consequence of economic recession. On the other hand, the... more

- by Ekrem Erdem
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- Public Finance, Turkish Economy, Public sector, Global Financial Crisis

ABSTRACT By using the comprehensive Bank Lending Survey from the Euro Area - where we can exploit time and cross-country variation of the stance of monetary policy - this paper studies the impact of monetary policy on banks' appetite for risk. We find robust evidence that lower overnight rates soften bank credit standards (CS), both for the average and also for the riskier loans. The softening of CS is over and above an improvement of the quality of borrower's industry and collateral (i.e. over and above the balance sheet channel of monetary policy). Banks especially soften their CS by reducing spreads on average loans, but also by reducing collateral requirements and covenants and by increasing loan amount and maturity. The softening of CS is for all types of loans but the impact is bigger for loans to non-financial corporations. We also find that CS are pro-cyclical. More importantly, by exploiting cross-country variation of Taylor-rule implied rates, we find evidence that rates too low for too long soften even further CS. We also find that higher securitization activity increases the impact of low overnight rates on the softening of CS, even when we instrument securitization by the level of regulation in the market for securitization. In addition, using a time-varying measure of banking supervision, we find that weaker bank supervision increases the impact of low overnight rates on the softening of CS. Finally, we find that overnight rates are more important in explaining CS than long-term rates, term spread, house price growth or bank credit growth. In sum, our results suggest that lower short-term rates, higher securitization activity and weaker banking supervision soften the lending standards over and above improvements in the borrowers' credit-worthiness, thus indicating higher bank risk-taking. These results, therefore, have implications on the assessment of the origin of the current financial crisis.

- by Angela Maddaloni and +1
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- Risk Taking, Monetary Policy, Euro Area, House Prices

To verify if a delegated monitor can certify its ability to perform its assigned tasks, we test whether syndicated loans in which a larger share of the facility is retained by the arranger have lower interest rates. For a large sample of syndicated loans in over 80 countries we find that this certification effect exists and is greater for facilities characterized by greater due diligence and monitoring efforts. Further, for listed companies the announcement effect of the new loan on the stock price is an increasing function of the portions of the loan retained by the arranger.

- by Dario Focarelli
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- Monetary Economics, Economic Theory, Applied Economics, Event Study

This paper analyses the determinants of international bank lending to the largest countries in Asia and Latin America through a framework based on "push"/"pull" factors. Our results show that both types of factors determine international bank lending. However, they differ from those of the early 1990s' literature in that aggregate lending to emerging market countries appears to have been procyclical to growth in lending countries rather than countercyclical. Moreover, the sharp increase in short-term lending during the 1990s seems to have been largely a pull phenomenon. Additionally, there is evidence that fixed rate regimes encouraged international bank lending, while bandwagon and contagion effects were also present. The introduction of the Basel Accord on capital adequacy does not appear to have played a significant role in international bank lending to emerging economies. JEL Classification Numbers: E42, E52, E58

- by Marian Micu
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- Emerging Economies, Latin America, Emerging Market, BanK Lending

State led credit and savings programs have been implemented in numerous low income countries, but their success in reaching the poor remains widely debated. We report on research which exploits the policy features of the Indian social banking program to provide evidence on this issue. State-led branch expansion into rural unbanked locations reduced poverty across Indian states. In addition, the enforcement of directed bank lending requirements was associated with increased bank borrowing among the poor, in particular low caste and tribal groups.

- by Robin Burgess
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- Economics, BanK Lending, Low Income Countries

The recent reforms in Nigeria’s banking sector have underscored the need for due diligence in lending. The study investigates the application of real estate as loan security to establish the extent and process of its use by commercial banks in Nigeria. Questionnaire survey was used to elicit response from a sample of commercial banks selected randomly. The findings demonstrate that real estate is the most widely used collateral instrument and banks follow due process in its application as collateral. However, the use is hindered by documentation and foreclosure problems. The findings are consistent with literature that real estate plays a significant role in secured lending, especially in developing countries. Overall, the borrower’s title to the collateral, the nature and quality of the title as well as the value of the real estate are important considerations when banks apply real estate as loan collateral. Thus, real estate, and especially property values, land titles and records...

- by Chukwuma Nwuba
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- Real Estate, Economics, Key words, BanK Lending

document a Ushaped effect of market concentration on relationship lending which cannot be easily accommodated by the investment and strategic theories of relationship lending. In this paper, we suggest that this non-monotonicity can be explained by looking at the organizational structure of local credit markets. We provide evidence that marginal increases in interbank competition are detrimental to relationship lending in markets where large and out-of-market banks are predominant. On the contrary, where relational-based lending technologies are already widely in use in the market by a large group of small mutual banks, an increase in competition may drive banks to further cultivate their extensive ties with customers. JEL-Code: G21, L11.

This paper studies cross-sectional differences in banks interest rates. It adds to the literature in two ways. First, it analyzes systematically the micro and macroeconomic factors that influence the price-setting behaviour of banks. Second, by using banks’ prices (rather than quantities) it provides an alternative way of disentangling loan supply from loan demand shift in the “bank lending channel” literature.

This paper examines the main implications of recently increasing foreign bank penetration on bank lending as a channel of monetary policy transmission in emerging economies. Using a dynamic panel model of loan growth, we investigate the loan granting behavior of 1273 banks in the emerging economies of Asia, Latin America, and Central and Eastern Europe during the period from 1996 to 2003. Applying the pooled OLS, system GMM, and panel VAR estimators, we find consistent evidence that foreign banks are less responsive to monetary shocks in host countries, as they adjust their outstanding loan portfolios and interest rates to a lesser extent than domestic private banks, independent of their liquidity, capitalization, size, efficiency, and credit risk, and although there exists a bank lending channel in the emerging economies, it is declining in strength due to the increased level of foreign bank penetration. We also explore possible driving factors for the different responses of foreign and domestic banks to monetary policy shocks by investigating foreign banks’ different behavior during banking crises and tranquil periods, the effects of mode of entry to host countries, the home-country effects, and the response of foreign banks from OECD countries vs. all foreign countries including non-OECD countries. We suggest the access of foreign banks to funding from parent banks through internal capital markets as the most convincing explanation.► We examine the impact of foreign bank penetration on monetary policy transmission. ► Foreign banks are less responsive to monetary shocks than domestic banks. ► The bank lending channel in emerging economies is weakened due to foreign banks. ► We identify factors for different responses of foreign banks to monetary shocks.

- by Alina Luca
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- Eastern Europe, Emerging Economies, Applied Economics, Panel Data
- by Vincent Lim
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- Emerging Economies, Capital Flows, Global Financial Crisis, Emerging Market

This paper uses a unique UK data set of small to medium sized private companies,to analyse how banks restructure distressed firms. The typical debt structure consists of one senior lender (a bank) and a large number,of unsecured trade creditors who togetherwith the bank provide about 80% of the company’s total borrowings. The paper addresses three important

- by Julian Franks
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- Finance, Financial Distress, BanK Lending

Building on the important study by Beck, Bank supervision and corruption in lending. Journal of Monetary Economics 53, 2131-2163], we examine the effects of both borrower and lender competition as well as information sharing via credit bureaus/registries on corruption in bank lending. Using the unique World Bank data set (WBES) covering more than 4,000 firms across 56 countries with information on credit bureaus/registries, assembled by Private credit in 129 countries. Journal of Financial Economics 84, 299-329], and bank regulation data collected by Barth, Caprio, and Levine [2006. Rethinking Bank Regulation: Till Angels Govern. Cambridge University Press, New York] to measure bank competition and information sharing, we find strong evidence that both banking competition and information sharing reduce lending corruption, and that information sharing also helps enhance the positive effect of competition in curtailing lending corruption. We also find that the ownership structure of firms and banks, legal environment, and firm competition all exert significant impacts on lending corruption.

- by James Barth
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- Financial Economics, Ownership Structure, Information Sharing, Data Collection