Abstract We conjecture that marketplace lending provokes an increase in the quantity of entrepreneurship, particularly more regionally disadvantaged areas, albeit at lower average quality. Using a fuzzy regression discontinuity design exploits exogenous variation borrowers’ access to loans along U.S. state borders, we estimate 10% causes 0.44% business establishments per capita. The effects are...

This paper demonstrates how the behavior of credit markets in a transition-like environment can be a function of the market structure in the commercial lending sector that was inherited from the pre-reform economy. Using a game theoretic model, we investigate one possible explanation for how a more crowded banking sector can diminish the scale of commercial lending in a market in which informat...

Using panel data collected in 2005, we evaluate how bank size, discretion over credit, incentive schemes, competition, and the institutional environment affect lending to small- and medium-sized enterprises in China. We deal with the endogeneity problem using instrumental variables, and a reduced-form approach is also applied to allow for weak instruments in estimation. We find that total bank ...

We investigate whether government credit guarantee schemes, extensively used after the onset of Covid-19 pandemic, led to substitution non-guaranteed with guaranteed rather than fully adding supply lending. study this issue using a unique euro-area register data, matched supervisory bank data and establish two main findings. First, loans were mostly extended small but comparatively creditworthy...

The recent banking crisis highlights the challenges faced in credit intermediation. New online peerto-peer lending markets offer opportunities to examine lending models that primarily cater to small borrowers and that generate more types of information on which to screen. This paper evaluates screening in a peer-to-peer market where lenders observe both standard financial information and soft, ...