The effects of credit risk transfer on bank monitoring and firm financing
Autor(a) principal: | |
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Data de Publicação: | 2004 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/12464 |
Resumo: | This paper examines the efects of the transfer of credit risk associated with bank loans. We are interested in (a) whether the transfer of credit risk has any impact on the intensity with which banks monitor their borrowers and (b) whether credit risk transfer infuences the amount of financing that is provided to firms in an economy. Our model first develops conditions under which bank finance is available to firrms, mainly in the spirit of Holmstrom/Tirole (1997). We then introduce projects with uncorrelated pay-offs and argue that one possible economic rationale for credit risk transfer is diversi¯cation. We analyze whether and how within this scenario the transfer of the credit risk of loans changes a bank's incentives to monitor its debtors. Finally we investigate whether and what kind of impact this may have on the amount of ¯nancing available to firms in an economy. Our results indicate that the monitoring incentives are being eroded indeed and that credit risk transfer can increase the overall amount of obtainable funds in an economy. |
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Behr, Patrick GottfriedEscolas::EPGEFGV2014-11-18T11:09:57Z2014-11-18T11:09:57Z2004-10-07http://hdl.handle.net/10438/12464This paper examines the efects of the transfer of credit risk associated with bank loans. We are interested in (a) whether the transfer of credit risk has any impact on the intensity with which banks monitor their borrowers and (b) whether credit risk transfer infuences the amount of financing that is provided to firms in an economy. Our model first develops conditions under which bank finance is available to firrms, mainly in the spirit of Holmstrom/Tirole (1997). We then introduce projects with uncorrelated pay-offs and argue that one possible economic rationale for credit risk transfer is diversi¯cation. We analyze whether and how within this scenario the transfer of the credit risk of loans changes a bank's incentives to monitor its debtors. Finally we investigate whether and what kind of impact this may have on the amount of ¯nancing available to firms in an economy. Our results indicate that the monitoring incentives are being eroded indeed and that credit risk transfer can increase the overall amount of obtainable funds in an economy.engEscola de Pós-Graduação em Economia da FGVSeminários de pesquisa econômica da EPGETodo cuidado foi dispensado para respeitar os direitos autorais deste trabalho. Entretanto, caso esta obra aqui depositada seja protegida por direitos autorais externos a esta instituição, contamos com a compreensão do autor e solicitamos que o mesmo faça contato através do Fale Conosco para que possamos tomar as providências cabíveisinfo:eu-repo/semantics/openAccessMonitoringFirm financingCredit risk transferEconomiaEmpréstimo bancárioRisco (Economia)The effects of credit risk transfer on bank monitoring and firm financinginfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVORIGINAL1721.pdf1721.pdfapplication/pdf303332https://repositorio.fgv.br/bitstreams/88400fd1-b990-40de-ab0b-05fe35dd1f82/downloada4e92c37e6780767abb4938f9dc5de59MD51LICENSElicense.txtlicense.txttext/plain; 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dc.title.eng.fl_str_mv |
The effects of credit risk transfer on bank monitoring and firm financing |
title |
The effects of credit risk transfer on bank monitoring and firm financing |
spellingShingle |
The effects of credit risk transfer on bank monitoring and firm financing Behr, Patrick Gottfried Monitoring Firm financing Credit risk transfer Economia Empréstimo bancário Risco (Economia) |
title_short |
The effects of credit risk transfer on bank monitoring and firm financing |
title_full |
The effects of credit risk transfer on bank monitoring and firm financing |
title_fullStr |
The effects of credit risk transfer on bank monitoring and firm financing |
title_full_unstemmed |
The effects of credit risk transfer on bank monitoring and firm financing |
title_sort |
The effects of credit risk transfer on bank monitoring and firm financing |
author |
Behr, Patrick Gottfried |
author_facet |
Behr, Patrick Gottfried |
author_role |
author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EPGE |
dc.contributor.affiliation.none.fl_str_mv |
FGV |
dc.contributor.author.fl_str_mv |
Behr, Patrick Gottfried |
dc.subject.por.fl_str_mv |
Monitoring Firm financing Credit risk transfer |
topic |
Monitoring Firm financing Credit risk transfer Economia Empréstimo bancário Risco (Economia) |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Empréstimo bancário Risco (Economia) |
description |
This paper examines the efects of the transfer of credit risk associated with bank loans. We are interested in (a) whether the transfer of credit risk has any impact on the intensity with which banks monitor their borrowers and (b) whether credit risk transfer infuences the amount of financing that is provided to firms in an economy. Our model first develops conditions under which bank finance is available to firrms, mainly in the spirit of Holmstrom/Tirole (1997). We then introduce projects with uncorrelated pay-offs and argue that one possible economic rationale for credit risk transfer is diversi¯cation. We analyze whether and how within this scenario the transfer of the credit risk of loans changes a bank's incentives to monitor its debtors. Finally we investigate whether and what kind of impact this may have on the amount of ¯nancing available to firms in an economy. Our results indicate that the monitoring incentives are being eroded indeed and that credit risk transfer can increase the overall amount of obtainable funds in an economy. |
publishDate |
2004 |
dc.date.issued.fl_str_mv |
2004-10-07 |
dc.date.accessioned.fl_str_mv |
2014-11-18T11:09:57Z |
dc.date.available.fl_str_mv |
2014-11-18T11:09:57Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
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article |
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publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10438/12464 |
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http://hdl.handle.net/10438/12464 |
dc.language.iso.fl_str_mv |
eng |
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eng |
dc.relation.ispartofseries.por.fl_str_mv |
Seminários de pesquisa econômica da EPGE |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
publisher.none.fl_str_mv |
Escola de Pós-Graduação em Economia da FGV |
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