This paper hypothesizes that the special role of banks as corporate quasi-insiders has been changing due to developments in informational, legal and institutional infrastructures of syndicated loan markets. We investigate the integration of intermediated and disintermediated financial markets through highly leveraged transaction (HLT) syndicated loans during the 1990s. We demonstrate that, with...

Utilizing the proprietary data of a company operating 10 pawnshops throughout Kentucky and Ohio, and exploiting the randomized variation of the Economic Stimulus Payments of 2008, this paper studies the effect of positive liquidity shocks on pawn loan utilization. We uncover a statistically significant 67% decrease in pawn loan utilization in the week following receipt of ESP checks. However, i...

This study focuses on the supplemented strategies of microfinance institutions (MFIs), in which the MFI offers nonfinancial services, such as entrepreneurship related knowledge, in addition to financial services to impoverished borrowers at the bottom of the pyramid (BoP). We examine two contextual factors–foreign direct investment (FDI) and loan defaults–to better understand the relationship b...

In this paper, we present the design, implementation and evaluation of intelligent methods that assess bank loan applications. Assessment concerns the ability/possibility of satisfactorily dealing with loan demands. Different loan programs from different banks may be proposed according to the applicant’s characteristics. For each loan program, corresponding attributes (e.g. interest, amount of ...

This paper models loan rate-setting behavior, taking into account the product pricing and performance of the borrowing firm, and also calculates the bank’s loan-risk sensitive equity values. The lending function creates the need to model bank equity as a capped call option, which captures the credit risk directly related to management of a firm’s operations. When the product price set by the bo...

This paper is used to cluster the various components of a bank customer details and segregate potential customers eligible for loan. The application of this technique helps the banker to scale the potentiality of their customers and take necessary steps to decide for loan approval. The classic difficulty of recognizing the customer’s potentiality is solved using this thesis and helps them to ju...

This paper proposes a novel method for recommending books to pupils based on a framework called Edu-mining. One of the properties of the proposed method is that it uses only loan histories (pupil ID, book ID, date of loan) whereas the conventional methods require additional information such as taste information from a great number of users which is costly to obtain. To achieve this, the propose...

This paper analyzes how the movements of the policy interest rate affect bank-relevant variables through changes in the composition of the loan portfolio. Using a computational approach that fully accounts for borrowers’ heterogeneity, we show how the variety of bank customers changes and how this change affects the bank’s cash influx, making it more volatile. The paper also sheds light on how ...

After making a loan, a bank finds out if the loan needs contract enforcement (“monitoring”); it also decides whether to lay off credit risk in order to release costly capital. A bank can lay off credit risk by either selling the loan or by buying insurance through a credit default swap (CDS). With a CDS, the originating bank retains the loan’s control rights but no longer has an incentive to mo...

Student Loan Reforms for German Higher Education: Financing Tuition Fees It is generally agreed that the funding base for German universities is inadequate and perhaps the time has come for serious consideration of the imposition of non-trivial tuition charges. Against this background, this paper compares conventional and income contingent loans for financing tuition fees at German universities...