Search results for "Participation loan"
showing 2 items of 2 documents
Information acquisition in SME's relationship lending and the cost of loans
2015
Abstract This study analyzes the effect of the reputation SMEs get in a relationship lending on the cost of next loans. A unique dataset of 734 Spanish SMEs' relationship lending provides information on a loan-by-loan basis about the ex post previous loan performance, which measures reputation. No prior empirical research differentiates the cost of loans following a defaulted loan from the costs of those following a successfully repaid loan. Results show that lenders obtain information about borrowers' risk-level during relationship lending and use this information. Loans granted after a successful one pledge significantly lower collateral and interest rate than loans granted after a defaul…
INFORMATION CHANNELS INFLUENCING THE HOUSEHOLDS’ DECISION OF HOME LOAN PROVIDERS
2012
With rapid growing of competitiveness in the Latvian commercial banking, and resemblance of services offered by banks, it has become significantly important that banks detect the information sources influencing the customer choice of banks of financial products. The relevant literature indicates that a great deal of research effort has been expended to investigate bank selection criteria for broad categories of customers. One promising segment, which, arguably, has not been given enough attention, is the households group. Home loans products make the markets that had the huge increase before crisis. The great fall of interest rates along with the offering of new, more flexible and attractiv…