Distance and private information in lending

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August undefined, 2024

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 … 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 ...

Going Private: A First-Timer’s Guide To Private Lending For ... - Forbes

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 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. mayfield photography mcminnville tn

Information asymmetry between banks, rent extraction, and …

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 ... 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 … 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 ... herter \\u0026 co frankfurt

Distance and information in lending decisions - ResearchGate

Distance in Bank Lending: The Role of Social Networks

WebDec 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 ... WebJul 1, 2010 · Using a unique data set of all loan applications by small firms to a large bank, we show that borrower proximity facilitates the collection of soft information, leading to a trade-off in the availability and pricing of credit, which is more readily accessible to … D82 - Asymmetric and Private Information; Mechanism Design; D83 - Search; … herter \u0026 co frankfurtWebdistance 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. 100 or more miles) has grown. The distribution of (log) borrower-lender distance has become increasingly bimodal, with a large share herter \u0026 co financial advisory

"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 … " - Distance and private information in lending

Distance and private information in lending

WebJan 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 ... 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 …

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WebDec 17, 2002 · The distance between small firms and their lenders is increasing, and they are communicating in more impersonal ways. After documenting these systematic changes, we demonstrate they do not arise from small firms locating differently, consolidation in the banking industry, or biases in the sample. 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. …

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. 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 …

WebJul 13, 2010 · Using a unique data set of all loan applications by small firms to a large bank, we show that borrower proximity facilitates the collection of soft information, leading to a … 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

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 …

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 … mayfield physiotherapyWebUnfortunately, 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. herter\u0027s 12mp trail camera instructionsWebfor private information the distance variables become statistically insigniﬁcant whereas the credit score is highly signiﬁcant. Consistent with models of lending under … mayfield physical therapy mayfield ohio herter\u0027s 12mp game camera manualWebSumit 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) mayfield physical therapy green townshipWebinformal 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 herter\u0027s 12mp trail camera manualWebMay 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, … mayfield physical therapy ohio