This paper develops a parsimonious static model for characterizing financing terms in collateralized lending markets. We characterize the systematic risk exposures for a variety of securities and develop a simple indifference-pricing framework to value the systematic crash risk exposure of the collateral. We then apply Modigliani and Miller’s (1958) Proposition Two (MM) to split the cost of bea...

The issue of retail banking is extremely important and topical. Across the globe, retail lending has been a spectacular innovation in the commercial banking sector in recent years. The growth of retail lending, especially, in emerging economies, is attributable to the rapid advances in information technology, the evolving macroeconomic environment, financial market reform, and several micro-lev...

This paper provides novel evidence on a particular real cost of political interference on banks—preferential lending to politically important sectors crowds out lending to other sectors in the economy. Analyzing staggered state elections in India, I show that politicians influence banks to increase lending to farmers before elections, which crowds out lending to manufacturing firms. These lendi...

Banks may well perform differently in lending to firms according to their funding structure. This paper surveys the relation between Loan volatility and deposit in Iranian banking system. The extent to which bank lending is connected to funding structure is affected by the banks’ characteristics (such as capital structure, profitability, and the measure of non-performing loans). To analyze this...

The paper by Heider and Hoerova (2009) is ambitious. It studies the interaction between secured interbank lending, unsecured interbank lending, and banks’ portfolio choices. It is motivated by a puzzling empirical observation, namely the “decoupling of secured and unsecured lending rates” in the Great Financial Crisis of 2007–09. The observation made by Heider and Hoerova is that on August 9, 2...

background: it is unclear whether knowing of current hiv status is associated with change in injecting behaviors among people who inject drugs (pwid) in iran. the objective of the present study was to determine whether awareness of hiv positive status is associated with a reduction in injecting risk behaviors, after matching for socio-demographic characteristics . methods : five hundred male pw...

Minority and Immigrant Homeownership Experience: Evidence from the 2009 American Housing Survey Using data from the 2009 American Housing Survey and Hazard Model, this paper provides empirical evidence that the homeownership experience during the recent housing boom and housing bust was not homogenous across all groups in the U.S. The recent deterioration of underwriting practices and a boom in...

In this paper we consider the connection between the packet loss ratio (PLR) in a switch with a finite buffer of size L and the tail distribution of the corresponding infinite buffer queue Q. In the literature the PLR is often approximated with the tail probability P(Q > L), and in practice the latter is often a good conservative estimate on the PLR. Therefore, efforts have mainly focused on fi...

The purpose of the article/hypothesis. present contribution is focused on lending market, its credit products, and actors, with particular regard to non-bank small-dollar lenders underserved borrowers. analyze some specific loans related legislative initiatives from American European financial markets which may constitute remedies problem predatory lending. Methodology. analysis was based legal...