I am pleased to be here today to discuss the impact that switching some loans to grants would have on poor countries debt burdens. In July 2001, President Bush proposed that the World Bank and other development banks replace 50 percent of future loans to the worlds poorest countries with grants. A goal of this proposal was to relieve poor countries long-term debt burdens. The presidents grants ...

This paper studies the impact of foreign bank entry on domestic firms’ access to bank credit using a within-country staggered geographic variation in the policy of foreign bank lending in China. The paper finds that after foreign bank entry profitable firms use more long-term bank loans; whereas firms with higher value of potential collateral do not. It also finds that non-state-owned firms bec...

We develop a model of insider lending in which a borrower can give incentives to a bank manager to misuse his right of control by extending a loan at favorable rates to the borrower at the expense of the equity value of the bank. The model explains why insider loans are often made to borrowing firms that are also large shareholders of the bank. Although in principal every borrower could bribe t...

one of the main challenges facing the agriculture bank of iran regarding lending loans is the high probability of default by farmers. several factors could be involved in this issue and should be considered in order to control and reduce the risk in the failure of repayment. this study aimed to examine the factors affecting the repayment performance of agricultural loans in the city of maragheh...

Over the last two decades, bank credit has evolved from the traditional relationship banking model to an originate-to-distribute model where banks can originate loans, earn their fee, and then sell them off to investors who desire such exposures. We show that the borrowers whose loans are sold in the secondary market underperform other bank borrowers by between 8% and 14% per year on a risk-adj...

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 ...

Background: There are several factors that lead to the growth or decline of the nonperforming loans, such as macroeconomic variables and bank specific variables, banks ownership structure, corruption and information sharing. Among them one of the main factors that affect the non-performing loans are the corruption. In developing countries corruption plays very important role in the growth of no...

  One of the main problems of SMEs is how to finance their investments. The role of banks in this regard is crucial, since they can be a type of sources of financing through lending credits directly to SMEs. The key role of the paper thus relies on analyzing the effect of SMEs financing by the Iranian banking system.   The objective of this paper is to determine the influence of loans demanded...

Using panel data for 188 countries over the period 1970-2002 this paper empirically analyzes the influence of the IMF and the World Bank on voting patterns in the UN General Assembly. Countries receiving adjustment programs and larger non-concessional loans from the World Bank vote more frequently in line with the average G7 country. The same is true for countries obtaining non-concessional IMF...