Recent research on multi-loan lending operations has remained largely silent on the question of what ties together the retail banking functions of scale and scope lending. Our main point is that in a sense, they are just two different manifestations of banking expansion. This is especially true to the extent that banks are heavily involved in consolidation-based lending. In a multi-loan call pr...

Microfinance through joint liability or group lending has received a lot of attention recently from policy makers as well as academicians. It is playing important role in delivering financial services to the ‘socially and economically excluded’ poor, in general, and women, in particular. Grouplending works with various dynamic incentives. One such is the principle of progressive lending which p...

Fintech lending is an alternative vehicle to traditional lending. In the modern industry, fintech will play a vital role as it ensures banking everywhere. The ecosystem in India improving every day and by 2023 emerge key source. RBI issued detailed guidelines this regard Sept, 2022 ensure transparent fair mechanism at low cost. providing new opportunities borrowers investors lower cost, greater...

We derive an optimal dynamic lending contract in a simple adverse selection model with limited commitment on the borrower side. An optimal contract involves “penalty” rates after a default, and favorable rates after a success. It also charges higher rates for first-time borrowers than for repeat borrowers, as in “relationship” lending. We compare the efficiency of a group lending contract (of t...

Institutions that rely on joint liability to facilitate lending to the poor have a long history and are now a common feature of many developing countries. Economists have proposed several theories of joint-liability lending that stress various aspects of its informational and enforcement advantages over other forms of lending. This paper analyzes how joint-liability lending promotes screening, ...

Relationship lending is a common practice in credit financing all over the world, particularly in Germany. On the basis of a comprehensive data set comprising information on firm-bank relationships for more than 16,000 observations, this study analyses the determinants of relationship lending in Germany. We find that small, young and R&D-intensive firms tend to choose relationship lending. Furt...

In this paper we investigate whether macroeconomic uncertainty could distort banks’ allocation of loanable funds. To provide a road– map for our empirical investigation, we present a simple framework which demonstrates that lower uncertainty about the return from lending should lead to a more unequal distribution of lending across banks as managers take advantage of more precise knowledge of di...

The credit platform of P2P network is a new type of lending model which based on Internet technology. It is the inevitable product in the rapid development of science, technology and social economy. It makes the current credit model more diversity and comprehensive, which plays a pivotal role in China's economic development. This paper introduces the mode and characteristics of P2P network lend...

I use geographic variation in bank lending to study how bank real estate losses impacted the supply of credit and employment during the Great Recession. Banks exposed to distressed housing markets cut mortgage and small business lending relative to other banks in the same county. This lending contraction had real effects, as counties whose banks were exposed to adverse shocks in other markets s...