The Real Effects of Bank Branch Closings and Restructurings

Martín‐Oliver, Alfredo; Toldrà-Simats, Anna; Vicente, Sergio

doi:10.2139/ssrn.3644878

Cited by 3 publications

(1 citation statement)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This paper also builds on the literature that studies the consequences of branch closures. Bonfim et al (2021), Martín-Oliver et al (2020), and Nguyen (2019, among others, document negative effects on credit and firm survival, with larger effects on small firms.…”

Section: Introductionmentioning

confidence: 99%

Banks' Physical Footprint and Financial Technology Adoption

2023

View full text Add to dashboard Cite

Section: Introductionmentioning

confidence: 99%

Banks' Physical Footprint and Financial Technology Adoption

2023

View full text Add to dashboard Cite

How Forced Switches Reveal Switching Costs: Evidence from the Loan Market

Liaudinskas

2023

J. Financ. Quant. Anal.

View full text Add to dashboard Cite

This article proposes a novel way to estimate consumer switching costs and uses Lithuanian credit register data and two bank closures to provide this estimate for the loan market. I show that when a distressed bank’s closure forced firms to switch, they started borrowing at lower interest rates instantly and permanently and that this drop revealed the lower bound of firms’ ex ante switching costs. A healthy bank’s closure showed no such effect. The article’s findings suggest that distressed banks hold up and overcharge firms and that by closing and resolving such banks with good-bank/bad-bank separation regulators can improve firm financing.

show abstract

Banks’ Physical Footprint and Financial Technology Adoption

Mariani¹,

Ornelas²,

Ricca³

2023

View full text Add to dashboard Cite

We investigate how the presence of physical bank branches moderates financial technology diffusion. Our identification strategy uses services suspensions caused by criminal groups that perform hit-and-run raids exploding branch facilities and rendering them inoperable for months. We show that the shock depletes the cash inventory of branches, but the stock of credit and deposits remain unaffected. We then document that customers increase their usage of noncash payments after the events. We investigate a new instant payment technology called Pix that was a remarkable success in terms of adoption. After robbery events, the number and value of Pix intra-municipality transactions increase, as well as the number of users. We also find Pix usage spillover effects that go beyond cash substitution. First, the number of Pix transactions and users also increases when either the payer or the payee is in an unaffected municipality. Second, we show that there are local spillovers to digital institutions, indicating that cash dependence can be an impediment to their expansion. Our results shed light on the determinants of technology adoption and the consequences of the recent transition in the banking industry from a physical branch-based model to an increasing reliance on digital services.

show abstract

The Real Effects of Bank Branch Closings and Restructurings

Cited by 3 publications

References 0 publications

Banks' Physical Footprint and Financial Technology Adoption

Banks' Physical Footprint and Financial Technology Adoption

How Forced Switches Reveal Switching Costs: Evidence from the Loan Market

Banks’ Physical Footprint and Financial Technology Adoption

Contact Info

Product

Resources

About