This paper studies the risk-return profile of centralized and decentralized banks. We address the conditions that favor a particular lending regime while acknowledging the effects on lending and returns caused by the course of the business cycle. To analyze these issues, we develop a model which incorporates two stylized facts; (i) banks in which lending decisions are decentralized tend to have...

Over the last two decades, bank credit has evolved from the traditional relationship banking model to an originate-to-distribute model where banks can originate loans, earn their fee, and then sell them off to investors who desire such exposures. We show that the borrowers whose loans are sold in the secondary market underperform other bank borrowers by between 8% and 14% per year on a risk-adj...

recent growth and developments in internet and electronic services play a significant role in banking industry all over the world especially in iran. it caused an intensive competition between governmental and non- governmental banks in the field of using e-banking services in a way that each bank attempts to attract more customers using high-quality e-services. ways of delivering services, qua...

The evidence of the recent years in the banking network of Iran indicates the increasing trend of nonperforming loans each year; thus, the main objective of the current study is to examine the impact of bank specific factors, esp. capital adequacy ratio on the NPLs. Six years dynamic panel data (2007-2012) of 19 banks are applied to scrutinize the relationship between capital adequacy ratio as ...

unreliability of financial statements in iran has urged this country’s financial services industry management to manipulate practices by which they could gain reliable risk scores for borrowers. this research extracts the most influential qualitative factors that would impact the default of a business relationship borrower. solicitation of the factors is done through delphi methodology. the mea...

Do commercial banks invest less in information gathering activity when they compete more aggressively with each other? Does intensifying competitive pressure in bank loan markets affect the quality of informational ties that bind borrowers and lending banks? Using survey data from German manufacturing firms, we are able to directly measure information flows from loan applicants to banks. We fin...

Banks in non-metropolitan areas compete in a spatially differentiated environment. Non-metro community banks have been insulated from increasing competition from metro banks due to their reliance on soft information in relationship lending. Proximity to borrowers, therefore, may be an important source of market power for non-metro community banks. This paper estimates a structural model of the ...

trust is one of the most important factors for the development of electronic banking. the purpose of this study is to determine effective factors on trust in e-banking in the form of a conceptual model. due to the rapid growth of electronic banking in the country, identify factors affecting trust in e-banking is very important. population of this study is customers of bank melli in urmia. we us...