Purpose The linkages between credit allocation and productivity have particular relevance in Portugal. This study aims to investigate whether extended by the Portuguese banking system has been allocated most productive firms within each sector. Design/methodology/approach With a data set covering 95% of total outstanding non-financial corporations recorded register, authors loans resident banks...

one of the measures taken by the 1979 revolutionary government of iran was to denounce the mixed public-private ownership of the banking system of the pre-revolutionary era and implement a full scale banking nationalization and merging scheme. since then the banking system has been operating under close supervision and scrutiny of the government - exercising its power to impose a variety of res...

This paper investigates whether and how property dispositions affect credit ratings of real estate investment trusts (REITs). We use an instrument variable to control the potential endogeneity problem associated with firm’s decision to divest assets and find that property dispositions have a positive effect on REIT corporate credit ratings. We further investigate the underlying channels for thi...

The purpose of this study is to find the relationship between lending to Small and Medium-size Exporter Enterprises (E-SMEs) and the use of Basel II Capital Accord for the first time in the banking system of Iran. Results showed that 96.69 percent of small firms were in the very low risk category of credit portfolio. This proof explains a consistent and balanced relationship between risk- weigh...

This paper studies the effects of interest rate restrictions on loan allocation. In 1714, the British government tightened the usury laws, reducing the maximum permissible interest rate from 6 to 5 percent. A sample of individual loan transactions from a goldsmith bank allows us to examine how interest rate restrictions affected loan allocation. Average loan size and minimum loan size increased...

We develop a model with money and credit where agents have different productivity to study credit and allocation. We show the link between the credit rationing, productivity and monetary policy, and study the distributional effects of monetary policy on the credit constraints, money holdings, and the ability to trade across agents. An agent’s productivity reflects his ability to replenish the m...

For many households, paying lower borrowing costs is the surest, fastest way to increase net worth. Using administrative, credit bureau and survey data on U.S. credit cards, we find pervasive and systematic cross-individual variation in borrowing costs. Credit risk and product differentiation explain about one-third of that variation. The remaining riskadjusted dispersion can materially affect ...

The worldwide financial crisis of 2007–2008 raised serious concerns about the soundness banks’ activities and extent to which banking regulation should supervise investment decisions. We contribute this topic by examining Spanish case, has been emblematic bubble burst dynamics in credit market. In particular, we study allocation bank among companies from 1999 2014, showing that larger accumulat...

Mazandaran province is one of the most important agricultural areas in Iran. Researches findings show that the role of bank credits is really important due to the lack of available funds in agricultural sector. In this study, the relationship between allocation of Agricultural Bank credits of Iran as professional bank section and agricultural employment was studied in the Mazandaran province ba...