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Distance and private information in lending

WebJun 18, 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 ... Webcontract 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

The Causal Impact of Distance on Bank Lending - INFORMS

WebDistance and Private Information in Lending. Review of Financial Studies, 2010, vol. 23, issue 7, 2757-2788. Abstract: We study the effects of physical distance on the acquisition and use of private information in informationally opaque credit markets. Using a unique data set of all loan applications by small firms to a large bank, we show that ... WebDec 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 … lama rah el sabr https://flowingrivermartialart.com

Distance and Private Information in Lending

Webcontract 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 Webfinding is consistent with the notion that banks mistrust their private information as distance increases and further points to its local nature. Our main contribution … 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 … jera sns

[PDF] What Do A Billion Observations Say About Distance and ...

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Distance and private information in lending

Distant Lending, Specialization, and Access to Credit - Dallas Fed

WebFeb 1, 2007 · Distance and information in lending decisions Authors: Sumit Agarwal Robert B. H. Hauswald Abstract Abstract Using a unique data set of loan applications by … WebAug 19, 2024 · We address the question of whether or not the increased distance to lenders caused by branc... Distance still matters: Local bank closures and credit …

Distance and private information in lending

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WebThis study aims to examine whether branch-firm distance, branch-headquarter distance and local bank competition affect bank lending in China. By incorporating loan … WebApr 6, 2024 · Abstract. We investigate the role of physical distance in corporate lending by exploiting infrastructure improvements as shocks to travel time. Lower travel time increases the likelihood of initiating a new banking relationship, consistent with an economic surplus from lower transaction costs. In existing lending relationships, banks capture ...

Webdistance for each loan. We begin by documenting new empirical facts about small business lending. In the past two decades, the share of very distant small business loans (e.g. … 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.

WebFeb 17, 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 ... http://qed.econ.queensu.ca/pub/students/allenj/bookmark/papers/degryse_ongena_05.pdf

WebMar 29, 2008 · Our results shed new light on the importance of soft information in informationally opaque credit markets and show how borrower proximity facilitates the …

http://ushakrisna.com/2757.pdf lamar airport advertisingWebJul 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 … jera spcWebOur results reveal the important role of social connectedness as an informal information channel, speak to the nature of borrowing constraints, and have implications for bank … lamar advising appointment