Elections and provisioning behavior: Assessing the Indian evidence

The study investigates the impact of elections on bank provisioning. Using longitudinal data for India, the results indicate that banks reduce provisions around elections. This effect is seen primarily at state-owned and old private banks. In addition, the evolution of these provisions shows a cyclical pattern. No discernable impact of elections on provisioning is evident one year ahead of elections. The net effect of these practices is reflected in bank financials, in terms of higher funding cost and an increase in lending rates.     

New insights in Peer-to-Peer carsharing and ridesharing participation intentions: Evidence from the “provider-user” perspective

Carsharing services (CS) and ridesharing are gaining popularity worldwide through Peer-to-Peer (P2P) platforms, which appear to gradually complement or replace conventional CS business.This empirical study investigates the participation intentions in P2P shared mobility services accounting for different statuses people may adopt: provider and/or user. The analysis of a large car owner survey in three major European capitals indicates that these participation decisions are driven by common latent preferences and, people who are more prone to become a peer provider are more likely to use the P2P shared mobility service (and vice versa). The results also reveal the role of individual values such as possession self-link, individualism, and environmentalism in the decision to join a P2P shared mobility platform. Furthermore, our study shows how provider/user status may affect the participation intentions process in the urban population.     

金融科技创新、网贷利率决定与小微企业融资——兼论“麦克米伦缺口”的治理

作为金融科技创新模式之一,P2P网贷为小微企业融资提供了重要渠道,探索如何通过P2P网贷治理"麦克米伦缺口"具有重要意义。本文以金融科技创新为视角,以长尾理论为基础,通过构建不完全信息的博弈模型,讨论P2P网贷利率形成机制,并选取相关的面板数据,检验P2P网贷综合利率及其影响因素之间的相关性。研究表明,金融科技创新通过发挥普惠效应并形成普惠价值,服务小微企业融资。借贷双方的力量对比是影响P2P网贷利率的重要因素。合规的P2P网贷有助于缩小"麦克米伦缺口",成为小微企业的主要融资方式。P2P从2016年进入规范发展阶段以来,极端风险得到有效控制,利率形成机制更趋合理。因此,当前我国应充分发挥金融科技、网络借贷对小微企业融资的支持作用,更好地服务实体经济。     

The pass-through of bank capital requirements to corporate lending spreads

We study the impact of higher bank capital requirements on corporate lending spreads using granular bank- and loan-level data. Our empirical strategy employs the heterogeneity in capital requirements across banks and time of implementation in Switzerland. We find that changes in the capital deviation from the regulatory minimum affect lending spreads asymmetrically. In response to a reduction in the capital deviation, banks with deficits with respect to their risk-weighted capital requirement raise spreads relative to banks with surpluses and de-leverage. Banks respond to higher requirements by raising spreads and, for deficit banks, by cutting lending.     

Does lending relationship help or alleviate the transmission of liquidity shocks? Evidence from a liquidity crunch in China

We examine China’s June 2013 liquidity crunch as a negative shock to banks and analyze the wealth effects on exchange-listed firms. Our findings suggest that liquidity shocks to financial institutions negatively impact borrower performance, particularly borrowers reporting outstanding loans at the end of 2012. Stock valuations of firms with long-term bank relationships, however, outperform the market and experience smaller subsequent declines in investment than peers lacking solid banking relationships. This effect is the strongest for firms that enjoy good relations with China’s large state-owned banks or foreign banks, and weakest for firms whose connections are solely with local banks. We document a positive correlation between the stock performances of firms and the stock performances of lender banks and the likelihood of lender banks operating as net lenders in the interbank market. These results suggest that banks transmit liquidity shocks to their borrowing firms and that a long-term bank-firm relationship may mitigate the negative effects of a liquidity shock.     

Branch network structure,authority and lending behaviour

Using a novel dataset of Ukrainian banks, this paper examines the link between the structure of branch network and bank lending. Bank regional branches are categorised into contact points without loan decision-making authority and more independent delegated branches which can make loan decisions. We find that a large and dispersed network of contact points can help increase credit supply and mitigate risks through diversification. Further, banks benefit from the information advantage brought by the presence of delegated branches in local markets. However, the longer distance between headquarters and local delegated branches, the more amplified agency problems become, which outweighs the benefits. Our findings suggest that the optimal structure could be a centralised network of delegated branches combined with a diversified access point network.