This paper examines the e↵ects of intra-financial lending – claims between financial institutions – on aggregate investment and credit to the non-financial sector in the United States. Building on Montecino, Epstein, and Levina (2014) we document a large growth in intra-financial assets beginning in the early 1980s. Using a vector autoregression model, we find that intra-financial lending is ne...

Using a unique panel design that enables to control for bank, firm, market and loan heterogeneities, we confirm relationship lenders charge higher rates in good times lower bad times. However, show risky single-bank firms do not benefit from this insurance mechanism are “held-up” by lenders. Local bank competition non-bank finance dependence alleviate information-monopolistic behavior. Finally,...

Banks normally trade-off the amount of loans created by risk piled up in their assets portfolios. However, performance can induce a ‘search for yield’ or ‘gamble to survive’ behaviour. Using sample 149 European banks during period 2001–2016, we show that management hypothesis holds after 2007–2008 financial crisis and large banks. Contrarily, moral hazard hypothesis, under which practise excess...

This research aims to investigate the moderating effect of information-seeking on positive relationship between loan inclusion and Fintech P2P lending. It exploits how plays an important role in decision. Unlike previous studies, we use primary data from 281 borrowers test hypotheses. We robust OLS regression two-stage least square estimate our model, reveal three essential findings. First, inc...

This paper examines the phenomenon of cross-border property lending and examines a number of issues regarding lending procedures and decision making processes in the context of the relationship between lender and professional advisor. It commences by placing these procedures and processes in the context of the development of cross border European property investment and finance. The UK has been...

In this paper, we analyze patterns of transaction between individuals using data drawn from Kiva.org, a global online crowdfunding platform that facilitates prosocial, peer-to-peer lending. Our analysis, which employs an aggregate dataset of country-to-country lending volumes based on more than three million individual lending transactions that took place between 2005 and 2010, considers the du...

Peer-to-peer lending is hypothesized to help equalize economic opportunities for the world's poor. We empirically investigate the "flat-world" hypothesis, the idea that globalization eventually leads to economic equality, using crowdfinancing data for over 660,000 loans in 220 nations and territories made between 2005 and 2013. Contrary to the flat-world hypothesis, we find that peer-to-peer le...

In this paper we investigate how country shareholding arrangements affect the lending of multilateral development banks (MDBs) under different economic conditions and over time. To do so, we consider three different “types” of MDBs—one dominated by non-borrowers (the World Bank), another controlled by borrowing countries (the Corporación Andina de Fomento, CAF), and a third where control is mor...

This research investigated the potential for improving Peer-to-Peer (P2P) credit scoring by using “private information” about communications and travels of borrowers. We found that P2P borrowers’ ego networks exhibit scale-free behavior driven by underlying preferential attachment mechanisms that connect borrowers in a fashion that can be used to predict loan profitability. The projection of th...

This paper establishes a theoretical and empirical link between the use of aggressive mortgage lending instruments, such as interest only, negative amortization or subprime, mortgages and the underlying house price volatility. Such instruments, which come into existence through innovation or financial deregulation, allow more borrowing than otherwise would occur. Within the context of a theoret...