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Distance and private information in lending

WebSep 1, 2024 · As discussed, loan distance is an ideal measure for overall information asymmetry between lender and borrower in each loan transaction. Besides, the adopt … 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 ...

Information asymmetry between banks, rent extraction, and …

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. WebJun 16, 2010 · Analyzing loan rates and firms’ decision to switch lenders provides further evidence for banks’ strategic use of private information. However, distance erodes our … motorcycle hits deer video https://edgeexecutivecoaching.com

Relationship lending, hierarchical distance and credit tightening ...

Webphysical distance on the collection of soft private information, its hardening in the credit-assessment process, and its effects on exchange in credit markets. To shed light on … 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 … 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 motorcycle holdings asx

What Do a Billion Observations Say About Distance and Relationship Lending?

Category:The Causal Impact of Distance on Bank Lending Semantic Scholar

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Distance and private information in lending

Distance, Lending Relationships, and Competition

WebCiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): We study the effects of physical distance on the acquisition and use of private information in … http://ushakrisna.com/2757.pdf

Distance and private information in lending

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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 ... 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 ...

WebHowever, distance erodes our lender’s ability to collect proprietary intelligence and to carve out local captive markets suggesting that the requisite soft information is primarily local. … 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.

Webinformal lending. Informal lenders address information and incentive problems in lending by their proximity to the borrower. Proximity, indicated by relationship and near distance, may contribute to generating private information, thus reducing the need for collateral. Despite the prominence of Webprivate information as distance increases and further points to its local nature. Our main contribution consists of providing direct evidence on the location-specific nature of …

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

WebJul 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 … motorcycle hoist motowinch lc2500WebDec 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 … motorcycle holdingsWebSumit Agarwal, 2010. "Distance and Private Information in Lending," Review of Financial Studies, Society for Financial Studies, vol. 23(7), pages 2757-2788, July. Full references (including those not matched with items on IDEAS) motorcycle hoist for salehttp://ushakrisna.com/rfs.pdf motorcycle hoist for pickupWebdistance between borrowers and lenders in Section I. In Section II, we ex-amine plausible, but relatively mechanical, explanations of the changes we document. In Section III, we outline an explanation based on the changing availability of information and its effect on lending practice. We examine evidence that such changes may, in fact, be ... motorcycle holder for phoneWebUsing 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 … motorcycle holdings boardWebcontract 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 motorcycle holder for truck