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
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