Bank Loan Commitment Contracts: Data, Theory, and Tests

Shockley, Richard L.; Thakor, Anjan V.

doi:10.2139/ssrn.8409

Cited by 81 publications

(101 citation statements)

References 17 publications

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“…(Page 3.866 of Transmittal 192 of the Federal Reserve Regulatory System (2/97) manual.) 21 See Shockley and Thakor (1997) for a detailed analysis of the contractural structure of loan commitments.…”

Section: Measuring Deposits Liquid Assets and Commitmentsmentioning

confidence: 99%

Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking

Kashyap¹,

Rajan²,

Stein³

1999

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Section: Measuring Deposits Liquid Assets and Commitmentsmentioning

confidence: 99%

Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking

Kashyap¹,

Rajan²,

Stein³

1999

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“…per cent of loans are made under commitment (Shockley and Thakor, 1997). In order to control for time-specific effects our econometric model also includes the time dummy variables that indicate the year in which a loan was given.…”

Section: Variables and Descriptive Statisticsmentioning

confidence: 99%

The Effects of the Bank-Internal Ratings on the Loan Maturity

2007

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Dorothea Schäfer DIW-BerlinOleksandr Talavera DIW-BerlinJanuary 30, 2007 * The usual disclaimer applies. Corresponding author: Dorothea Schäfer, DIW -Berlin, Department of Innovation, Industry and Services, Königin-Luise-Str. 5, 14195 Berlin, Phone +49-30 89789-162, Fax +49-30 89789-104 Email: dschaefer@diw.de. We thank our cooperation partners, two German banks, for giving us access to the data and for their openness and support in the course of data processing. We are also grateful to Kurt Hornschild for his support in the early stage of this project. 1The Effects of the Bank-Internal Ratings on the Loan Maturity. AbstractThe paper focuses on the effects of three different internal bank ratings -Risk-, Propertyand Creditworthiness-Rating -on the loan maturity. We use a sample of about 5,000 loans given to sole proprietors and corporate borrowers by two German banks from

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“…Thakor (2005) provides a theoretical rationale for why borrowers purchase loan commitments, despite the MAC clause. Shockley and Thakor (1997), however, argue that MAC clauses are rarely invoked. Moreover, evidence from work by Sufi (2009) andNini, Smith, andSufi (2009), among others, show that firms and banks tent to renegotiate contractual clauses leading to the suspension of borrowing facilities.…”

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confidence: 99%

Corporate Liquidity Management: A Conceptual Framework and Survey

Almeida¹,

Campello²,

Cunha³

et al. 2013

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Ensuring that a firm has sufficient liquidity to finance valuable projects that occur in the future is at the heart of the practice of financial management. Yet, while discussion of these issues goes back at least to Keynes (1936), a substantial literature on the ways in which firms manage liquidity has developed only recently. We argue that many of the key issues in liquidity management can be understood through the lens of a framework in which firms face financial constraints and wish to ensure efficient investment in the future. We present such a model and use it to survey many of the empirical findings on liquidity management.Much of the variation in the quantity of liquidity can be explained by the precautionary demand for liquidity. While there are alternatives to cash holdings such as hedging or lines of credit, cash remains "king", in that it still is the predominate way in which firms ensure future liquidity for future investments. We discuss theories on the choice of liquidity measures and related empirical evidence. In addition, we discuss agency-based theories of liquidity, the real effects of liquidity choices, and the impact of the 2008-9 Financial Crisis on firms' liquidity management.

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Bank Loan Commitment Contracts: Data, Theory, and Tests

Cited by 81 publications

References 17 publications

Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking

Banks as Liquidity Providers: An Explanation for the Co-Existence of Lending and Deposit-Taking

The Effects of the Bank-Internal Ratings on the Loan Maturity

Corporate Liquidity Management: A Conceptual Framework and Survey

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