scholarly journals Herd Behavior in Bank Lending: Evidence from Turkish Loan Market

2021 ◽  
Author(s):  
Hilal Hümeyra ERDOĞAN
Keyword(s):  
Bank Lending ◽  
Herd Behavior ◽  
Loan Market

scholarly journals Herd behavior in the Japanese loan market: Evidence from bank panel data

2007 ◽  
Vol 16 (4) ◽  
pp. 555-583 ◽  
Author(s):  
Hirofumi Uchida ◽  
Ryuichi Nakagawa
Keyword(s):  
Panel Data ◽  
Herd Behavior ◽  
Loan Market

Herd Behavior in the Bangladeshi Loan Market

2018 ◽  
Vol 22 (1) ◽  
pp. 123-140
Author(s):  
Jeong-whan Hyeon
Keyword(s):  
Herd Behavior ◽  
Loan Market

Credit ratings, relationship lending and loan market efficiency

2017 ◽  
Vol 34 (1) ◽  
pp. 122-142 ◽  
Author(s):  
Keldon Bauer ◽  
Omar A. Esqueda
Keyword(s):  
Small Business ◽  
Market Efficiency ◽  
Credit Rating ◽  
Credit Ratings ◽  
Bank Lending ◽  
Relationship Lending ◽  
Content Type ◽  
Lending Relationships ◽  
Loan Market ◽  
Business Loan

Purpose Using the small-business loan market, this paper aims to test whether a structural shift in access to borrowers’ financial information (i.e. credit ratings) improves market efficiency, thereby improving entrepreneurs’ access to external capital. Design/methodology/approach This research uses the National Survey of Small Business Finance in a conditional logistic regression framework to tease out the marginal propensity to grant lines of credit given the firm’s credit rating – treating both of the events, namely, line of credit and credit ratings, as endogenous variables. This methodology overcomes potential reverse causality issues. Findings The results show that information brokers have allowed small firms to break away from long-term monopolistic lending relationships, thus contributing to more informationally efficient markets. Small businesses benefit from better-informed lenders by having better access to capital. Also, women appear less likely to receive a line of credit even after adjusting for credit ratings. Practical implications This research highlights the importance of credit report awareness/monitoring by entrepreneurs, as the small-business credit rating grows rapidly. Relationship lending is not enough to reach optimal financing costs. These papers call for more regulated credit ratings industry to reduce potential moral hazards. Originality/value This paper tests whether bank lending relationships (soft information) still matter after accounting for credit ratings (hard information). Additionally, this study measures the extent to which information sharing by data services bureaus, a proxy for informational efficiency, has increased allocation efficiency in the small-business loan market.

scholarly journals The Economic Impact of Herd Behavior in the Japanese Loan Market

2012 ◽  
Vol 20 (4) ◽  
pp. 600-613 ◽  
Author(s):  
Ryuichi Nakagawa ◽  
Hidekazu Oiwa ◽  
Fumiko Takeda
Keyword(s):  
Economic Impact ◽  
Herd Behavior ◽  
Loan Market

Agrarian receipts as a tool for the structural transformation of financial and credit relations in the agrarian business of the region

2019 ◽  
pp. 40-53
Author(s):  
Yuliia Nehoda
Keyword(s):  
Comparative Analysis ◽  
Retrospective Analysis ◽  
Structural Transformation ◽  
Pilot Project ◽  
Bank Lending ◽  
Economic Benefits ◽  
Advantages And Disadvantages ◽  
New Instrument ◽  
Agricultural Business ◽  
Business Entities

The subject of the research – is a set of organizational-economic relations arising in the process of structural transformation of financial and credit relations in the agricultural business. The purpose of the article is a retrospective analysis of structural transformations of financial and credit relations in the agricultural business, evaluation of the effectiveness and feasibility of the introduction of agricultural receipts as a new instrument of lending to the agricultural business of the regions. Methodology of work – system-structural and comparative analyzes (to determine the effectiveness of the crediting mechanism according to the agricultural receipts of the farmers of the region); monographic (when studying the problems of the functioning of the mechanism of lending to agrarians by agrarian receipts) economic analysis (when carrying out a comparative analysis of the mechanism of classical bank lending to the agrarian business and the mechanism of lending to agrarians according to agrarian receipts); modeling and forecasting (when determining ways to overcome the existing deficiencies in the mechanism of lending to agrarian business entities of the region according to agrarian receipts). The results of the work – a retrospective analysis of the structural transformation of financial and credit relations in the agricultural business was carried out. The mechanism of crediting agrarians according to agrarian receipts and the scale of its distribution in the agrarian business of the region are considered. A comparative analysis of the mechanism of classical bank lending to the agrarian business and the mechanism of lending to agrarians according to agrarian receipts was carried out. In the framework of the pilot project “Agrarian receipts in Ukraine” of the international financial corporation (IFC) in partnership with the Swiss Confederation in Ukraine, the example of the Poltava region defined the effectiveness of the crediting mechanism according to the agrarian receipts of the agrarians of the region. The advantages and disadvantages of the mechanism of crediting the subjects of the agrarian business on agrarian receipts are noted. The ways to overcome the existing shortcomings of the mechanism of crediting the subjects of the agrarian business of the region according to agricultural receipts are determined. Conclusions – according to the results of the conducted research, the effectiveness of the mechanism of lending to the agricultural business of the regions according to agricultural receipts was proved, its advantages and disadvantages were noted, and attention was also focused. Proposed in Art. 7 of Law No. 5479-VI clearly delineate cases and restrictions on the debtor’s reimbursement of expenses incurred by the lender with the acquisition of the right to grow and harvest the pledged crop of agricultural products, which will ensure the principle of equality of parties on economic benefits and distribution of credit risks according to agricultural receipts.

World Bank Lending for Small Enterprises, 1989-1993

1996 ◽  
Author(s):  
Leila M. Webster ◽  
Randall Riopelle ◽  
Anne-Marie Chidzero
Keyword(s):  
World Bank ◽  
Bank Lending ◽  
Small Enterprises

Modernizing the lending facility under concession agreements

2020 ◽  
Vol 26 (7) ◽  
pp. 1590-1609
Author(s):  
V.A. Rakhaev
Keyword(s):  
Financial Structure ◽  
Bank Lending ◽  
Early Termination ◽  
Scientific Methods ◽  
Financial Condition ◽  
Revenue Collection ◽  
Analysis And Synthesis ◽  
Financing Mechanism ◽  
General Scientific ◽  
The Russian Federation

Subject. The article addresses modernization of lending facilities under concession agreements. It is important for evaluating the terms of credit transactions, effectiveness of credit projects, and the concessionaire's ability to repay the loan. Objectives. The purpose is to review the current financing mechanism and underpin approaches to improving the credit facilities within concession agreements. Methods. The study rests on general scientific methods, like the systems and logical analysis and synthesis, principles of induction and deduction, financial calculation techniques. The analytical part employs the balance method, methods of financial coefficients and the method of technical and economic estimates. Results. I analyzed the financial structure and special characteristics of concession agreements, parameters of concessionaires’ activities; considered the types of risks inherent in bank lending under concession agreements, methods for their identification and mitigation; offered a mechanism of lending, including the structure of credit transactions, restrictions for the financial condition of concessionaires, additional requirements and penalties for their non-fulfillment. The findings can help banks define lending parameters for concession agreements. The provided recommendations may be useful for consideration by the authorities of the constituent entities of the Russian Federation. Conclusions. It is possible to reduce the risks of lending under concession contracts, if their terms and conditions are stable, and if the lost income of concessionaires is compensated in the event of early termination. Reasonable tariffs for works and services and increased revenue collection will promote this type of lending.

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