Download or read book Small Business Credit Availability and Relationship Lending written by Allen N. Berger and published by . This book was released on 2014 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper models the inner workings of relationship lending, the implications for bank organizational structure, and the effects of shocks to the economic environment on the availability of relationship credit to small businesses. Relationship lending depends on the accumulation over time by the loan officer of quot;softquot; information. Because the loan officer is the repository of this soft information, agency problems are created throughout the organization that are best resolved by structuring the bank as a small, closely-held organization with few managerial layers. The shocks analyzed include technological innovations, regulatory regime shifts, banking industry consolidation, and monetary policy shocks.
Download or read book Small Business Credit Availability and Relationship Lending written by Allen N. Berger and published by . This book was released on 2001 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Small Business Credit Availability and Relationship Lending the Importance of Bank Organizational Structure written by Allen N. Berger and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A More Complete Conceptual Framework for Financing of Small and Medium Enterprises written by Allen N. Berger and published by World Bank Publications. This book was released on 2005 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors propose a more complete conceptual framework for analysis of credit availability for small and medium enterprises (SMEs). In this framework, lending technologies are the key conduit through which government policies and national financial structures affect credit availability. They emphasize a causal chain from policy to financial structures which affect the feasibility and profitability of different lending technologies. These technologies, in turn, have important effects on SME credit availability. Financial structures include the presence of different financial institution types and the conditions under which they operate. Lending technologies include several transactions technologies, plus relationship lending. The authors argue that the framework implicit in most of the literature is oversimplified, neglects key elements of the chain, and often yields misleading conclusions. A common oversimplification is the treatment of transactions technologies as a homogeneous group, unsuitable for serving informationally opaque SMEs, and a frequent misleading conclusion is that large institutions are disadvantaged in lending to opaque SMEs.
Download or read book Surprising Use of Credit Scoring in Small Business Lending by Community Banks and the Attendant Effects on Credit Availability and Risk written by Allen N. Berger and published by DIANE Publishing. This book was released on 2010-06 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: There is a positive relationship between the use of credit scoring for small business (SB) loans and SB credit availability. This report employs data from a new survey on the use of credit scoring in SB lending, primarily by community banks. The survey evidence suggests that the use of credit scores in SB lending by community banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the SB owners rather than the more encompassing SB credit scores that include data on the firms as well as on the owners. This empirical analysis suggests that credit scoring is associated with increased SB lending after a learning period, with no material change in the quality of the loan portfolio. Charts ad tables.
Download or read book Small Business Credit Availability written by Joe Peek and published by . This book was released on 1995 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Report on Small Business Credit Availability written by Rosa Maria Moller and published by . This book was released on 1996 with total page 84 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Small Businesses Access to Capital written by United States. Congress. House. Committee on Small Business and published by . This book was released on 1996 with total page 140 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Surprising Use of Credit Scoring in Small Business Lending by Community Banks and the Attendant Effects on Credit Availability and Risk written by Allen N. Berger and published by . This book was released on 2014 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt: The literature has documented a positive relationship between the use of credit scoring for small business loans and small business credit availability, broadly defined. However, this literature is hampered by the fact that all of the studies are based on a single 1998 survey of the very largest U.S. banking organizations. This paper addresses a number of deficiencies in the extant literature by employing data from a new survey on the use of credit scoring in small business lending, primarily by community banks. The survey evidence suggests that the use of credit scores in small business lending by community banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business owners rather than the more encompassing small business credit scores that include data on the firms as well as on the owners. Our empirical analysis suggests that credit scoring is associated with increased small business lending after a learning period, with no material change in the quality of the loan portfolio. However, these quantity and quality results appear to vary depending on the way in which credit scores are implemented in the underwriting process.
Download or read book Credit Availability and the Role of Relationship Lending written by Claudia Plötscher and published by . This book was released on 1998 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Credit Scoring and the Availability Price and Risk of Small Business Credit written by Allen N. Berger and published by . This book was released on 2002 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Oxford Handbook of Entrepreneurial Finance written by Douglas Cumming and published by OUP USA. This book was released on 2012-03-22 with total page 937 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a comprehensive picture of issues dealing with different sources of entrepreneurial finance and different issues with financing entrepreneurs. The Handbook comprises contributions from 48 authors based in 12 different countries.
Download or read book Relationship Lending and Lines of Credit for Small Business written by Jie Gong and published by . This book was released on 2010 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Keywords: loan rates, lines of credit, small business, collateral requirements.
Download or read book Relationship Lending and Small Business Finance Empirical Relationship Lending and Small Business Finance Empirical Analysis of Cost of Capital Credit Rationing and Firm Performance written by and published by . This book was released on 2006 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Resum Aquesta tesis investiga les fonts de valor de la banca relacional per les empreses. Després dun primer capítol introductori, el Capítol 2 revisa les contribucions més rellevants en la literatura de la banca relacional. El Capítol 3 adreça la pregunta si la banca relacional és compatible amb la competència bancària, usant dades duna enquesta a petites empreses dEstats Units. El resultat principal és que les tecnologies de banca relacional poden ser usades en les mercats bancaris més competitius sempre i quan les empreses es comprometin a demanar prestat de un sol banc. El Capítol 4 proposa una estratègia empírica per tal de discriminar entre les prediccions teòriques oposades de tenir una relació banc-empresa exclusiva: estimar lefecte diferencial en el cost i la disponibilitat del crèdit segons el grau de competència bancària. El Capítol 5 estudia lefecte de la banca relacional en la rendibilitat de lempresa. Pels dos últims capítols sutilitzen dades de panel de 70,000 petites i mitjanes empreses espanyoles (1993-2004). Els resultats són consistents amb la visió que els bancs sapropien majoritàriament del valor generat en les relacions properes amb les empreses sempre i quan no senfrontin a la competència daltres prestadors. Abstract This thesis investigates the sources of the value of lending relationships to the borrowing firm. After a first introductory chapter, Chapter 2 reviews the most relevant contributions to the relationship lending literature. Chapter 3 addresses the question of whether relationship lending is compatible with banking competition, using a survey of small firms in the United States. The main result is that relationship lending technologies are used in the most competitive banking markets as long as firms commit to borrowing from a single lender. Chapter 4 proposes an empirical strategy to disentangle the opposite theoretical predictions of exclusive bank-firm relationships: estimate the differential effect on cost and availability of c.
Download or read book Out of state Holding Company Affiliation and Small Business Lending written by Gary Whalen and published by . This book was released on 1995 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Determinants of Bank Involvement with SMEs written by Victor U. Ekpu and published by Springer. This book was released on 2015-12-23 with total page 99 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is a comprehensive, yet concise text that brings together all aspects of SME banking theories and empirical studies in one text. The book contains the latest policy debates on money creation and credit rationing and the relative role of demand-side and supply-side factors affecting SME financing. Readers will understand the borrower-specific, lender-specific and business environment drivers of bank finance for SMEs as well as the determinants of loan contract terms, particularly the risk premium and collateral. Readers will also understand how loan officers acquire proprietary information on SMEs and apply various lending techniques, such as financial statement lending, relationship lending and credit scoring to the loan underwriting process. In addition, the book also features recent trends on the rise of alternative finance intermediaries such as online peer-to-peer lenders and the competitive implications for traditional banks providing loans to SMEs. Findings from this work will thus be of particular interest to commercial bankers, bank-dependent small business borrowers as well as policy makers, and researchers in central banks, development banks, development agencies and international financial institutions.
Download or read book Relationship Lending and Lines of Credit in Small Firm Finance written by Allen N. Berger and published by . This book was released on 2014 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the role of relationship lending in small firm finance. We examine price and nonprice terms of bank lines of credit (L/C) extended to small firms. Our focus on bank L/Cs allows us toe examine a type of loan contract in which the bank-borrower relationship is likely to be an important mechanism for solving asymmetric information problems associated with financing small enterprises. We find that borrowers with longer banking relationships pay lower interest rates and are less likely to pledge collateral. These results are consistent with theoretical arguments that relationship lending generates valuable information about borrower quality.
