"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/34573 |
Resumo: | We study local loan conditions when banks close branches. In places where branch closures do not take place, firms that purposely switch banks receive a sixty-three basis points (bps) discount. However, after the closure of nearby branches of their credit-granting banks, firms that locally and hurriedly transfer to other banks receive no such discount. Yet, the loan default rate for the latter (more expensive) transfer loans is on average a full percentage point lower than that for the former (cheaper) switching loans. This suggests that transfer firms are of "better"quality than switching firms. In sum, even if local markets remain competitive, when banks close branches, firms lose. |
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"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetriesBank branch closuresD22D40F36G21Information asymmetriesLoan pricingWe study local loan conditions when banks close branches. In places where branch closures do not take place, firms that purposely switch banks receive a sixty-three basis points (bps) discount. However, after the closure of nearby branches of their credit-granting banks, firms that locally and hurriedly transfer to other banks receive no such discount. Yet, the loan default rate for the latter (more expensive) transfer loans is on average a full percentage point lower than that for the former (cheaper) switching loans. This suggests that transfer firms are of "better"quality than switching firms. In sum, even if local markets remain competitive, when banks close branches, firms lose.Veritati - Repositório Institucional da Universidade Católica PortuguesaBonfim, DianaNogueira, GilOngena, Steven2023-07-01T00:30:33Z2021-07-012021-07-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/34573eng1572-309710.1093/rof/rfaa03685109869823000685219800007info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-12-12T01:34:15Zoai:repositorio.ucp.pt:10400.14/34573Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:28:01.506744Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
title |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
spellingShingle |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries Bonfim, Diana Bank branch closures D22 D40 F36 G21 Information asymmetries Loan pricing |
title_short |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
title_full |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
title_fullStr |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
title_full_unstemmed |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
title_sort |
"Sorry, we're closed" bank branch closures, loan pricing, and information asymmetries |
author |
Bonfim, Diana |
author_facet |
Bonfim, Diana Nogueira, Gil Ongena, Steven |
author_role |
author |
author2 |
Nogueira, Gil Ongena, Steven |
author2_role |
author author |
dc.contributor.none.fl_str_mv |
Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Bonfim, Diana Nogueira, Gil Ongena, Steven |
dc.subject.por.fl_str_mv |
Bank branch closures D22 D40 F36 G21 Information asymmetries Loan pricing |
topic |
Bank branch closures D22 D40 F36 G21 Information asymmetries Loan pricing |
description |
We study local loan conditions when banks close branches. In places where branch closures do not take place, firms that purposely switch banks receive a sixty-three basis points (bps) discount. However, after the closure of nearby branches of their credit-granting banks, firms that locally and hurriedly transfer to other banks receive no such discount. Yet, the loan default rate for the latter (more expensive) transfer loans is on average a full percentage point lower than that for the former (cheaper) switching loans. This suggests that transfer firms are of "better"quality than switching firms. In sum, even if local markets remain competitive, when banks close branches, firms lose. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-07-01 2021-07-01T00:00:00Z 2023-07-01T00:30:33Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/34573 |
url |
http://hdl.handle.net/10400.14/34573 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
1572-3097 10.1093/rof/rfaa036 85109869823 000685219800007 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131998678155264 |