Credit rationing in small firm-bank relationships

Kirschenmann, Karolin

doi:10.1016/j.jfi.2015.11.001

Cited by 79 publications

(66 citation statements)

References 51 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The negative coefficient of the loan number suggests a decrease in loan volume ratio over the course of repeated borrowing, which is in line with Behr et al. () and Kirschenmann (). Thus, a reduction in information asymmetries between lender and borrower is reflected by an increase in loan volume.…”

Section: Progressive Lending To Farmers and Non‐farmerssupporting

confidence: 87%

“…Over the course of repeated borrowing, the mitigation of informational obstacles is represented by a rationing decrease. Considering ex‐post loan performance, the results reveal that rationing generally does increase the probability to default regardless of the firm's opaqueness, and that the statistically significant default decreasing effect of repeated borrowing does not occur until later in the relationship (Kirschenmann, ).…”

Section: Previous Empirical Findings and Hypothesesmentioning

confidence: 99%

“…While respecting the opaqueness of clients and the associated lending policies, neither Kirschenmann () nor Behr et al. () consider the application of progressive lending for clients of different business environments.…”

Section: Previous Empirical Findings and Hypothesesmentioning

confidence: 99%

See 2 more Smart Citations

Progressive Lending in Microfinance—What about the Farmers?

Hering

Mußhoff

2016

Review Development Economics

View full text Add to dashboard Cite

Dynamic incentives have become a common measure in microfinance institutions (MFI) to counteract the risk of default and to strengthen the borrower's identification with his micro‐lender. This article focuses on progressive lending over the course of the bank–borrower relationship. As the agricultural sector is increasingly important for Azerbaijan's economy, this study differentiates between the lending policies faced by farmers and non‐farmers, and matches the findings with the repayment performances of both client groups. By means of a rich data set spanning from 2007 through 2012 provided by an MFI in Azerbaijan, it can be demonstrated that farmers face a higher degree of loan volume rationing that cannot be justified by our findings on repayment performances. Moreover, we find that repeated borrowing increases the default probabilities of both client groups. In conclusion, we deduce that the MFI and borrowers could benefit from reconsidering the current lending policies.

show abstract

Section: Progressive Lending To Farmers and Non‐farmerssupporting

confidence: 87%

Section: Previous Empirical Findings and Hypothesesmentioning

confidence: 99%

See 1 more Smart Citation

Progressive Lending in Microfinance—What about the Farmers?

Hering

Mußhoff

2016

Review Development Economics

View full text Add to dashboard Cite

show abstract

“…This comes at the disadvantage that we cannot observe differences over a client relationship as for example documented for credit rationing by Kirschenmann ().…”

mentioning

confidence: 97%

Numeracy and On‐the‐job Performance: Evidence From Loan Officers

2020

Self Cite

View full text Add to dashboard Cite

We examine how the numeracy level of employees influences their on‐the‐job performance. Based on an administrative dataset of a retail bank we relate the performance of loan officers in a standardized math test to the accuracy of their credit assessments of small business borrowers. We find that loan officers with a high level of numeracy are more accurate in assessing the credit risk of borrowers. The effect is most pronounced during the precrisis credit boom period when it is arguably more difficult to pick out risky borrowers. (JEL G21, J24)

show abstract

“…This comes at the disadvantage that we cannot observe differences over a client relationship as for example documented for credit rationing by Kirschenmann (2016). 16 Only 2% of loans were granted in a currency different from the requested currency (for 1% of loans, the application was in Euro and the granted loan in RON and for 1% of loans the application was in RON and the granted loan in Euro).…”

mentioning

confidence: 99%

Numeracy and the Quality of On-the-Job Decisions: Evidence from Loan Officers

2017

Self Cite

View full text Add to dashboard Cite

Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.Numeracy and the quality of on-the-job decisions:Evidence from loan officers Martin Brown*, Karolin Kirschenmann** and Thomas Spycher*** July 2017Abstract We examine how the numeracy level of employees influences the quality of their on-thejob decisions. Based on an administrative dataset of a retail bank we relate the performance of loan officers in a standardized math test to the accuracy of their credit assessments of small business borrowers. We find that loan officers with a high level of numeracy are more accurate in assessing the credit risk of borrowers. The effect is most pronounced during the pre-crisis credit boom period when it is arguably more difficult to pick out risky borrowers.

show abstract

Credit rationing in small firm-bank relationships

Cited by 79 publications

References 51 publications

Progressive Lending in Microfinance—What about the Farmers?

Progressive Lending in Microfinance—What about the Farmers?

Numeracy and On‐the‐job Performance: Evidence From Loan Officers

Numeracy and the Quality of On-the-Job Decisions: Evidence from Loan Officers

Contact Info

Product

Resources

About