Information Technology and Financial Services Competition: Table 1

Hauswald, Robert; Marquez, Robert

doi:10.1093/rfs/hhg017

Cited by 267 publications

(116 citation statements)

References 22 publications

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“…In this literature it is well established that close ties between a bank and a borrowing firm influence the firm's access to finance in several possible ways (see Boot (2000) for a summary). Sharpe (1990), Rajan (1992), Petersen and Rajan (1995) and Hauswald and Marquez (2003), for instance, argued that repeated lending facilitates monitoring and screening and thereby mitigates problems of asymmetric information about a borrow's creditworthiness, because subsequent monitoring of the same borrower is more efficient as it involves lower monitoring costs and/or improves the signal about the borrower's creditworthiness. As these models point out, it strongly depends on the credit market conditions to what extend the informational advantage of a relationship lender mitigates the borrowing firms' funding constraints.…”

Section: Related Literaturementioning

confidence: 99%

Relationship Lending in the Interbank Market and the Price of Liquidity

Bräuning

Fecht

2016

Review of Finance

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This paper empirically investigates the effect of interbank relationship lending on banks' access to liquidity. Our analysis is based on German interbank payment data which we use to create a panel of unsecured overnight loans between 1079 distinct borrower-lender pairs. The data shows that banks rely on repeated interactions with the same counterparties to trade liquidity. For the price of liquidity, we find that in the run-up to the recent financial crisis of 2007/08 relationship lenders charged already higher interest rates to their borrowers after controlling for other bank specific characteristics and general market conditions. By contrast, during the crisis borrowers paid on average lower rates to their relationship lenders compared to spot lenders. The observed interest rate differences are statistically and economically significant and in line with theory that relationship lenders have private information about the creditworthiness of their close borrowers.

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Section: Related Literaturementioning

confidence: 99%

Relationship Lending in the Interbank Market and the Price of Liquidity

Bräuning

Fecht

2016

Review of Finance

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“…Hauswald and Marquez, 2003;or von Thadden, 2004), which could lead to a decreased interest rate sensitivity to firm's risk characteristics. This informational gain is only present for overlap borrowers and not for firms borrowing from only one of the merging banks.…”

Section: Ii2 Borrower Heterogeneity: Modifications Of the Trade-off mentioning

confidence: 99%

SMES and Bank Lending Relationships: The Impact of Mergers

2004

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This paper studies the impact of bank mergers on firm-bank lending relationships using information from individual loan contracts in Belgium. We analyse the effects of bank mergers on the probability of borrowers maintaining their lending relationships and on their ability to continue tapping bank credit. The Belgian financial environment reflects a number of interesting features: high banking sector concentration; "in-market" mergers with large target banks; importance of large banks in providing external finance to SMEs; and low numbers of bank lending relationships maintained by SMEs. We find that bank mergers generate short-term and longer-term effects on borrowers' probability of losing a lending relationship. Mergers also have heterogeneous impacts across borrower types, including borrowers of acquiring and target banks, borrowers of differing size, and borrowers with single versus multiple relationships. Firms borrowing from acquiring banks are less likely to lose their lending relationship, while target bank borrowers are more likely to lose their relationship. Overlap borrowers -borrowing from two of the merging banks -are less likely to lose their relationship than firms borrowing from only one of the merging banks or firms borrowing from nonmerging banks.

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“…La ganancia de eficiencia implicaría la reducción del riesgo en sus actividades, permitiendo una mejora en la calidad de cartera crediticia. En efecto, Hauswald y Márquez (2003) afirman que un contexto de mayor competencia, impulsa a los intermediarios financieros al desarrollo de nuevas tecnologías financieras de evaluación y control del riesgo crediticio lo que mejora la calidad de sus carteras crediticias. Asimismo, Caminal y Matutes (2002), Boyd y De Nicoló (2005) señalan que los bancos con mayor poder de mercado tienden a incurrir en un mayor riesgo crediticio al fijar elevadas tasas de interés a sus clientes, elevando con ello la probabilidad de no repago de los créditos.…”

Section: Marco Teóricounclassified

Competencia y calidad de cartera en el mercado microfinanciero peruano, 2003-2015

Huaman¹,

Andía²

2016

ECONOMIA

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RESUMENEl objetivo de este estudio es analizar la relación que existe entre la competencia y la calidad de cartera en el sector microfinanciero peruano en el periodo [2003][2004][2005][2006][2007][2008][2009][2010][2011][2012][2013][2014][2015]. Como indicador de competencia se emplea el poder de mercado estimado por el Índice de Lerner y como indicador de calidad de cartera se utiliza la tasa de morosidad. El análisis segmenta el mercado microfinanciero en tres grupos de instituciones microfinancieras (IMF), considerando el volumen promedio de sus colocaciones, de manera que, en el primer grupo se ubican las entidades con un mayor volumen promedio de colocaciones, en el segundo grupo se encuentran las entidades con un volumen medio de colocaciones y finalmente, en el tercer grupo se ubican las entidades con menor volumen promedio de colocaciones. Esta segmentación refleja la heterogeneidad de tamaño que existe entre estas entidades. Los resultados muestran un Índice de Lerner decreciente, para el primer y el tercer grupo, evidenciando una mayor competencia. En el segundo grupo, el comportamiento del Índice de Lerner muestra una tendencia creciente en los últimos meses del periodo estudiado, reflejando una menor competencia. Por otro lado, se evidencia una relación inversa entre el Índice de Lerner y la morosidad en los tres grupos, lo que implica que el aumento de competencia en el mercado microfinanciero ha generado un deterioro en la calidad de cartera crediticia. Este resultado se obtiene controlando el comportamiento de otras variables como son: el ciclo econó-mico, la expansión de los créditos, la eficiencia y la rentabilidad de las instituciones, además del efecto de la crisis financiera internacional del 2008. ABSTRACTThe aim of this study is to analyze the relationship between competition and loan portfolio quality in the Peruvian microfinance sector. To make this analysis the market is segmented into three groups of microfinance microfinance institutions IMFs), considering the average volume of its loans. So that, in the first group (large IMFs) entities of higher average volume of loans are located, in the second group (medium IMFs) entities with an average volume of loans are located and finally, in the third group (small IMFs) are entities with lower average loan volumes. This segmentation reflects the heterogeneity of size for loans between IMFs. The results show the Lerner index decreasing over time, for both the group of large IMFs and the group of small IMFs, showing a decrease of market power and increased competition in these two groups of entities. In the group of medium IMFs behavior Lerner index shows a growing trend in the last months of the period studied thus indicating a greater market power and less competition in this group of microfinance operators. On the other hand, an inverse relationship between the Lerner index over delinquency rate in the three groups of IMFs is found, implying that increased competition in the Peruvian microfinance market has deteriorated the quality of loan ...

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Information Technology and Financial Services Competition: Table 1

Cited by 267 publications

References 22 publications

Relationship Lending in the Interbank Market and the Price of Liquidity

Relationship Lending in the Interbank Market and the Price of Liquidity

SMES and Bank Lending Relationships: The Impact of Mergers

Competencia y calidad de cartera en el mercado microfinanciero peruano, 2003-2015

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