Credit risk, owner liability, and bank loan maturities during the global financial crisis

Abstract

We relate credit risk and owners' personal guarantees to bank loan maturities during the global financial crisis. The findings, which remain robust to reverse causality, show that firms rated as low risk, with a strong relationship with the bank, whose owners provided personal guarantees and with large loan sizes obtained longer maturities. Banks with larger nonperforming loans provided loans with shorter maturities. Firms with low-and high-risk ratings that provided owners' personal guarantees obtained longer maturities. These findings shed additional light on the relationship between risk and loan maturities and the role of personal guarantees in reducing information asymmetries.

Digital financial inclusion and quality of economic growth

“…Existing research widely acknowledges that information asymmetry and high transaction costs are significant obstacles impeding the ability of traditional finance to foster economic development [ [54] , [55] , [56] ]. From the perspective of the credit rationing theory, information asymmetry complicates the achievement of equilibrium between borrowers and lenders, thereby hindering traditional financial institutions from effectively supporting the growth of the real economy [ 57 , 58 ].…”

La gestión financiera y su influencia en la recuperación de los créditos de la cooperativa de ahorro y crédito santo cristo de Bagazán sede Chachapoyas – 2020

“…Del mismo modo, Naifar, N. (2020) factores que han generado el aumento de la morosidad es la incertidumbre que tienen las personas por la actual crisis sanitaria y económica que enfrenta el mundo. Pero Dias, F. et al, (2019). Resolvieron que los bancos que presentan una alta tasa de morosidad son los que otorgaron créditos en menor tiempo, ya que, la pandemia afecto económicamente a todas las familias del mundo.…”