Effects of loan loss provisions on growth in bank lending: Some international comparisons

Bank Lending and Property Prices: Some International Evidence*

Over the last two decades, bank lending has been closely correlated with property prices in both industrialised and developing countries. From previous empirical studies it is not clear whether these cycles were driven by property prices or lending. In this study I analyse the direction of causality between bank lending and property prices in 16 industrialised countries over the last two decade...

The Signalling Effects of Bank Loan-loss Reserve Additions

This study examines the market’s reaction to announcements of additions to the Loan Loss Reserve (LLR) account resulting from diverse problems in a bank’s loan portfolio which are unrelated to an international debt crisis. For the overall sample, with no division by type of loan, the reaction to an increase in LLRs is negative and statistically significant before the announcement; however, it t...

Federal Home Loan Bank Lending to Community Banks : Are Targeted

The Effect of Relationship Lending on Loan Contract Terms

This paper investigates the effect of relationship-lending on loan contract terms, especially on the interest rate, loan value, and collateral requirements. For this purpose, data on 4850 loans granted by a bank in 2016 is employed. Our estimations show a negative and significant relationship between the interest rate and quality and quantity of borrower-lender relationship. Furthermore, there ...

The Effects of Government Ownership on Bank Lending

This paper studies the effects of government ownership on bank lending behavior. Using information on individual loan contracts, I compare the interest rate charged to two sets of companies with identical characteristics borrowing respectively from stateowned and privately owned banks. State-owned banks charge lower interest rates than do privately owned banks to similar or identical firms, eve...