Abstract We derive three testable predictions from a bank-P2P lender model of competition: (a) P2P lending grows when some banks are faced with exogenously higher regulatory costs; (b) loans riskier than bank loans; and (c) the risk-adjusted interest rates on lower those loans. test these against data consumer credit market in Germany find empirical support. Overall, our analysis indicates that...

This paper considers the problem of fitting a finite Gaussian mixture with an unknown number of components to interest rates provided by a sample of credit institutions. Indeed, mixture models are able to represent arbitrarily complex probability density functions distributions, and hence outperform the usual non parametric kernel density estimates in several ways. Therefore, this tool enables ...

There is strong evidence that the interest rates charged by banks on the flow of newly extended Commercial & Industrial (C&I) loans predict future loan performance and CAMEL rating downgrades by bank supervisors. While internal risk ratings have little explanatory power for future loan performance, they do help predict future CAMEL downgrades. These findings suggest that supervisors might consi...

Three main types of mortgages are fixed interest contracts which automatically fall due on the sale of a dwelling, fixed rate loans which are assumable by a buyer, and floating rate instruments. When interest rates rise, the fall in the economic value of these assets in savings and loan associations' portfolios varies from one form of mortgage to another. For either of the fixed interest rate c...

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2 Since 2006 China's central government has opened up its financial markets to foreign Microfinance Institutions (MFI). The idea is that by allowing MFI's to operate, Agricultural Banks would lead to increase access to credit, economic efficiencies and growth in rural agriculture, and efficiency within the financial system in underserved markets. Microfinance as it is understood today refers to...

This study aims to analyze how the influence between Non-Performing Loans and Bank Size, Operating Income Operational Costs (BOPO), Basic Loan Interest Rates (SBDK), Inflation along with differences five variables in years before pandemic, namely 2018 2019, during 2020 2021. Research Methods using a purposive sampling technique, 37 conventional banks listed on IDX were obtained for research. Mu...

As a stated policy objective, the U.S. Department of Housing and Urban Development seeks to boost the national homeownership rate to 70 percent by 2006. To accomplish this goal, they estimate that 3.8 million additional families be added to the ranks of U.S. homeowners. Furthermore, HUD estimates that the homeownership gap between minority and nonminority families must be reduced by a full 15 p...

The opinions and recommendations of the authors of this study do not necessarily reflect official positions of the SBA or other agencies of the U.S. government. Executive Summary The long expansion, two recessions, and financial disruptions affected businesses of all sizes over the past dozen years. Small businesses may be particularly exposed to recessions, banking conditions, and monetary pol...