Arbeitspapier
Bank competition and collateral: theory and evidence
We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical model incorporating information asymmetries in a spatial competition framework where banks choose between screening the borrower and asking for collateral. We show that presence of collateral is more likely when bank competition is low. We then test this prediction empirically on a sample of bank loans from 70 countries. We estimate logit models where the presence of collateral is regressed on bank competition, measured by the Lerner index. Our empirical tests corroborate the theoretical predictions that bank competition reduces the use of collateral. These findings survive several robustness checks.
- ISBN
-
978-952-462-475-6
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Finland Research Discussion Papers ; No. 27/2008
- Klassifikation
-
Wirtschaft
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Hainz, Christa
Weill, Laurent
Godlewski, Christophe J.
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Finland
- (wo)
-
Helsinki
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Hainz, Christa
- Weill, Laurent
- Godlewski, Christophe J.
- Bank of Finland
Entstanden
- 2008
Ähnliche Objekte (12)
Interbank funds transfer systems: Liquidity needs, counterparty risks and collateral
Euler consumption equation with non-separable preferences over consumption and leisure and collateral constraints
Technological transformation and retail banking competition: Implications and measurement
Standard setting and competition in securities settlement
Competition and regulation in European retail payment systems
Screening in the credit market when the collateral value is stochastic
Moral hazard in the credit market when the collateral value is stochastic
Fixed rate loan contracts, maturity transformation and competition in the deposit market
Technological transformation and nonbank competition in a model of retail banking oligopoly
Pre-emptive horizontal mergers: theory and evidence
The effects of competition on banks' risk taking with and without deposit insurance
Competition in Finnish banking: Two tests
Interbank funds transfer systems: Liquidity needs, counterparty risks and collateral
Euler consumption equation with non-separable preferences over consumption and leisure and collateral constraints
Technological transformation and retail banking competition: Implications and measurement
Standard setting and competition in securities settlement
Competition and regulation in European retail payment systems
Screening in the credit market when the collateral value is stochastic
Moral hazard in the credit market when the collateral value is stochastic
Fixed rate loan contracts, maturity transformation and competition in the deposit market
Technological transformation and nonbank competition in a model of retail banking oligopoly
Pre-emptive horizontal mergers: theory and evidence
The effects of competition on banks' risk taking with and without deposit insurance
Competition in Finnish banking: Two tests
Interbank funds transfer systems: Liquidity needs, counterparty risks and collateral
Euler consumption equation with non-separable preferences over consumption and leisure and collateral constraints
Technological transformation and retail banking competition: Implications and measurement
Standard setting and competition in securities settlement
Competition and regulation in European retail payment systems
Screening in the credit market when the collateral value is stochastic
Moral hazard in the credit market when the collateral value is stochastic
Fixed rate loan contracts, maturity transformation and competition in the deposit market
Technological transformation and nonbank competition in a model of retail banking oligopoly
Pre-emptive horizontal mergers: theory and evidence
The effects of competition on banks' risk taking with and without deposit insurance