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
- by Gulcin Ozkan
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- Economics, Financial development, Applied Economics Letters, Public Debt
- by dean neu
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- Latin America, BanK Lending
- 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
- 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
- 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
- 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
- by Kasper Roszbach
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- Econometrics, Credit Scoring, Applied Economics, Default Risk
- by Jaromir Benes
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- Moral Hazard, Bank Capital, Bank Runs, Capital
- by Harold Ngalawa
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- Economics, Monetary Policy, BanK Lending, Exchange rate
- by Ernest Simeon Odior
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- Economics, Macroeconomics, Monetary Policy, Inflation
- 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
- 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
- by Gudrun Johnsen and +1
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- Financial Systems, Financial Markets, Internal Control, Financial System
- 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
- 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
- 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
- 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
- by Dario Focarelli
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- Monetary Economics, Economic Theory, Applied Economics, Event Study
- by Marian Micu
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- Emerging Economies, Latin America, Emerging Market, BanK Lending
- 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

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