bank capitalloan spreadscash flowhold-upinformation monopoliesWe test the predictions of several recent theories of how bank capital affects the rates that banks charge their borrowers. Key to all these theories is the notion that the relative bargaining power of a bank and its borrower are ...
some studies consider bank market structure as an indirect proxy for credit supply, providing general support for the structure–conduct–performance (SCP) theorem that bank market concentration leads to more bank market power, reduced credit supply, and higher loan rates (Gonzalez, 2009; Hannan, 19...
Explore competitive home loan interest rates offered by various banks to find the perfect fit for your budget and home-buying goals.
Credit risk or default risk is the inability or unwillingness of a borrower, or counterparty, to meet commitments in relation to lending, trading, hedging, settlement, and other financial transactions. The failure may be the result of bankruptcy, a temporary change in market conditions, or other...
5.3 Bank-borrower connection If the effect of bank intervention on firms’ earnings management is a result of control rights transfer, we could expect that such a relationship can be affected by the lender-borrower connection. Firms with more lenders could relatively easily find alternative financing...
One borrower says they were billed for payments even after paying off their loans and shared their frustration: "Made a payment on an auto loan for the full balance. The date my next payment would have normally been payed they made an additional withdrawal from my account. Called their custom...
Bankers report that the burden is on the borrower to prove to lenders that they have the cash flow to support new loan requests at the current elevated rates. Some borrowers may think twice about obtaining growth-oriented capital, for, say, equipment or acquisitions, while interest rates are ...
In the case of business borrowers, bank loans are used to finance WORKING CAPITAL requirements and are often renegotiated shortly before expiring to provide the borrower with a ‘revolving’ line of credit. Depending on the nature of the loan and the degree of risk involved, bank loans may ...
Credit riskarises when a bank makes a loan to an individual or company. The risk is that the borrower maydefaultand not be able to pay the loan back. Banks perform a thorough analysis of a borrower before making a loan to mitigate credit risk, yet, unforeseen defaults still occu...
Borrower Requirements To qualify for a personal loan from Citi, you must meet the following requirements: You must be the age of majority in your state You must meet Citi’s credit criteria If you aren’t sure how much money you’ll need or may have additional expenses, Citibank also offe...