Are regulations on the payday loan effective? Do people switch to other forms of expensive credit such as pawnshop loans because of such regulations? In this study, we aim to find the answers to these two questions through exploring state-level variations in regulations on payday loans and other alternative financial services. Using FDIC’s panel survey data and Google Trends data, we find that ...

Status Final Author(s) Ivan Martinez (AtoS), Miguel Angel Tinte (AtoS) This project is supported by the European Commission under the Information and Communication Technologies (ICT) Theme of the 7th Framework Programme for Research and Technological Development.

Although the rise in subprime lending and the ensuing wave of foreclosures was partly a result of market forces that have been well-identified in the literature, in the United States it was also a highly racialized process. We argue that residential segregation created a unique niche of poor minority clients who were differentially marketed risky subprime loans that were in great demand for use...

Getting loans from banks are almost impossible after 2008 global financial crisis. As a result, about 80% of companies in United Kingdom and United States offer their products on various short-term, free-interest loans (i.e., trade credit) to customers. Numerous researchers and academicians apply discounted cash flow (DCF) analysis merely to compute the interest earned and charged during the cr...

Do securitized loans differ from loans held on lenders’ balance sheets? If so, why? We assemble a unique dataset of commercial mortgages with information on loan characteristics at origination and subsequent performance. The most significant difference between securitized (CMBS) and balance sheet loans is the loan size. The largest loans are 42 percentage points more likely to be securitized th...

Using a national survey data where the event of individual households being refused loans (credit rationed) by financial institutions -as well as the specific loans for which they were turned down -is observed directly, this study investigates both the role of relationships on credit rationing in the nineties and the differential role of relationships across credit rationing in various consumer...

This paper models the price and income elasticity of retail finance in Australia using aggregate quarterly data and an autoregressive distributed lag (ARDL) approach. We particularly focus on the impact of the global financial crisis (GFC) from 2007 onwards on retail finance demand and analyse four submarkets (period analysed in brackets): owneroccupied housing loans (Sep 1985–June 2010), term ...

We model aggregate delinquency behaviour for consumer credit (including credit card loans and other consumer loans) and for residential real estate loans using data up until 2008. We test for cointegrating relationships and then estimate short run error correction models.We find evidence to support the portfolio explanations of declines in credit quality for consumer and for real estate loans, ...

As the needs of people are increasing, demand for loans in banks is also frequently getting higher every day. Banks typically process an applicant’s loan after screening and verifying eligibility, which a difficult time-consuming process. In some cases, applicants default lose capital. The machine learning approach ideal reducing human effort effective decision making approval by implementing t...

This paper examines the impact of government guaranteed small business loans on economic growth, and whether government guaranteed loans crowd out new businesses financed through the market. OLS estimates indicate a significant and positive relation between the Small Business Administration’s (SBA) guaranteed loans and metropolitan growth between 1993 and 2002. However, endogeneity hinders caus...