Learning from a rival bank and lending boom

Yoshiaki Ogura

doi:10.1016/j.jfi.2005.10.002

Learning from a rival bank and lending boom

Yoshiaki Ogura

研究成果: Article › 査読

25 被引用数 (Scopus)

抄録

When bankers observe a rival winning in the interbank competition for lending to a firm, they infer that the firm may be more promising than they had thought. From this consideration, they loosen their creditworthiness tests and lower the interest rates they offer in the next lending competition for the firm. Increased interbank competition reduces the impact of this observational learning and decreases the credit risk taken by each bank because of a severe winner's curse, while it increases the aggregate risk taken by the entire banking sector.

本文言語	English
ページ（範囲）	535-555
ページ数	21
ジャーナル	Journal of Financial Intermediation
巻	15
号	4
DOI	https://doi.org/10.1016/j.jfi.2005.10.002
出版ステータス	Published - 2006 10
外部発表	はい

ASJC Scopus subject areas

Finance
Economics and Econometrics

文献へのアクセス

10.1016/j.jfi.2005.10.002

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引用スタイル

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