Distance and private information in lending
WebUsing billions of observations on the locations of bank branches and firms in China, we measure lender-borrower distance by geographic information system (GIS) and find a … WebJul 20, 2005 · We study the effect on loan conditions of geographical distance between firms, the lending bank, and all other banks in the vicinity. For our study, we employ detailed contract information from more than 15,000 bank loans to small firms comprising the entire loan portfolio of a large Belgian bank.
Distance and private information in lending
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WebMay 1, 2013 · This paper provides new evidence on the benefits of local banking. Relying on a unique bank-level lending dataset covering 96 French counties from 2005 to 2013, completed by historical firm-level information on firm's main bank, our results reveal strong heterogeneities in the impact of local banking on SMEs' activity depending on firm size, …
Webmore distant suppliers, thereby breaking “the tyranny of distance” in small business lending. The authors draw two conclusions from their data analysis. First, the physical … http://ushakrisna.com/rfs.pdf
Webprivate information, and existing lending relationships affect a bank’s and its customers’ decision to transact. Despite the high cost of gathering and processing information for loan applications by small firms, the distance between banks and small-business borrowers has steadily increased in recent times (Petersen and Rajan, 2002). WebNov 9, 2024 · Private lender loans are most often non-owner occupied, short-term, interest-only, more flexible than traditional bank loans and may result in an easier and faster loan-approval process.
WebOne of the few studies that has examined average loan distances in the CRA data, by Granja et al. (2024), nds that average lending distances increased over this period and …
WebUnfortunately, loan companies won’t have it easier anytime soon. In the first half of 2024 alone, personal loan fraud rose by 40%, up 63% from the previous year, per Experian. Second-Party Loan Fraud . Second-party fraud occurs whenever an individual gives their personal information to another person to commit fraud. new ford territory suvWebDec 1, 2024 · Loan characteristics include the loan size, loan-to-value ratio, and collateral centrality. The centrality measure is strongly correlated with proximity to the inside bank (ρ=-0.831) and thus encompasses proximity, employed in earlier research ( Degryse and Ongena, 2005 ; Agarwal and Hauswald, 2010 ), and a measure of the general ... new ford thunder pickupWebJul 1, 2010 · Distance and Private Information in Lending. Sumit Agarwal, Robert Hauswald. Published 1 July 2010. Economics. Review of Financial Studies. We study the effects of … interstate airstream vanWebcontract information from more than 15,000 bank loans to small firms comprising the entire loan portfolio of a large Belgian bank. We report the first comprehensive evidence on the occurrence of spatial price discrimination in bank lending. Loan rates decrease with the distance between the firm and the lending bank and increase with interstate all battery center edmontonWebDec 1, 2024 · Besides the standard and hard financial information commonly used by banks, such as the borrower's income and credit report, lenders can view nonstandard, unverifiable and less quantifiable information, such as the maximum interest rate the borrower is willing to pay, a textual description of purpose of borrowing, and the … new ford thunderbird 2020WebJan 1, 2024 · Analyzing loan rates and firms’ decision to switch lenders provides further evidence for banks’ strategic use of private information. However, distance erodes our lender’s ability to collect ... new ford torino 2023WebOct 12, 2024 · Listen to a synopsis of this research, read by one of our lead authors. Assets under management of funds primarily involved in direct lending surged to $412 billion at end-2024—including nearly $150 billion in “dry powder” available to buy additional private debt assets—according to financial-data provider Preqin (see chart 1). new ford tourneo connect prijs