Soft Information in Small Business Lending

2007 ◽  
Author(s):  
Emilia Garcia-Appendini
Keyword(s):  
Small Business ◽  
Soft Information ◽  
Small Business Lending

scholarly journals Communication within Banking Organizations and Small Business Lending

2020 ◽  
Vol 33 (12) ◽  
pp. 5750-5783
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Qilin Peng ◽  
Wensi Xie
Keyword(s):  
Small Business ◽  
Travel Time ◽  
Small Firm ◽  
Soft Information ◽  
Travel Times ◽  
Small Business Lending ◽  
Communication Costs ◽  
Small Business Loans ◽  
The Impact

Abstract We investigate how communication within banks affects small business lending. Using travel times between a bank’s headquarters and its branches to proxy for the costs of communicating soft information, we exploit shocks to these travel times—the introduction of new airline routes—to evaluate the impact of within-bank communication costs on small business loans. We find that reducing headquarters-branch travel time boosts small business lending in the branch’s county. Several extensions suggest that new airline routes facilitate in-person communications that boost small-firm lending.

Soft Information and Small Business Lending

2013 ◽  
Vol 47 (1) ◽  
pp. 115-133 ◽  
Author(s):  
Yehning Chen ◽  
Rachel J. Huang ◽  
John Tsai ◽  
Larry Y. Tzeng
Keyword(s):  
Small Business ◽  
Soft Information ◽  
Small Business Lending

Stress Tests and Small Business Lending

2018 ◽  
Author(s):  
Kristle Romero Cortts ◽  
Yuliya S. Demyanyk ◽  
Lei Li ◽  
Elena Loutskina ◽  
Philip E. Strahan
Keyword(s):  
Small Business ◽  
Stress Tests ◽  
Small Business Lending

scholarly journals Effects of Regional Bank Merger on Small Business Borrowing: Evidence from Japan

2015 ◽  
Vol 7 (11) ◽  
pp. 62
Author(s):  
Hironobu Miyazaki ◽  
Hiroyuki Aman
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Economies Of Scale ◽  
Loan Portfolio ◽  
Small Business Lending ◽  
Borrowing Costs ◽  
Bank Merger ◽  
Regional Bank ◽  
Small Business Loans ◽  
The Impact

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

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