Financial journals have just begun to examine the implications of unsecured fixed-rate loans between lenders and borrowers administered over the internet. This study observes 31,550 loans issued between June 2007 and April 2013 with a 36-month term, that are fully paid or charged off, based on a data set from the largest P2P lending website. Initial findings within peer-to-peer (P2P) lending markets have identified that social disclosures may influence these markets. The result of this analysis unambiguously confirms social disclosures influence lenders and the factors significant for funding a loan are inconsistent with the factors significant to repayment of the loan. Prescriptive filters based on social disclosures can improve the likelihood of selecting a creditworthy borrower and increase the models explanatory power. The study finds that distinct forms of social disclosure and specific content within social disclosures predict the amount of funding received and probability of loan repayment.

Abstract The role of relationship banking has been the subject of intensive discussion in recent years. A large body of the literature has examined the benefits and costs related to lender-borrower relationships in small business finance. Despite the numerous studies conducted in both market-based and bank-based economies, the specific sources of the determinants of the value of relationship lending are ambiguous. However, many research results imply that a close and long-term relationship with the bank is desirable for small businesses. In this study, we investigate the sources of value in Finnish lender-borrower relationships in small business finance. We conduct three separate empirical studies that cover the following aspects of relationship banking: determinants of the value of the bank-firm relationship, collateral requirements and borrower risk, and the comparison of the different characteristics of relationship banking in bank financing and non-bank financing. We use unique and detailed credit file data from two sources, bank data from one of the largest banks in Finland and non-bank data from a large financial institution owned by the Finnish state. Both datasets cover the period 1995 to 2001. Our main findings are the following. First, duration and scope are important characteristics in determining the sources of value in the bank-firm relationship. We find that a longer relationship tends to lower the cost of the credit, and that wider scope tends to decrease the collateral requirements significantly. Second, a long-lasting bank-firm relationship is beneficial, especially to high-risk firms. As the relationship matures, loan premiums for high-risk firms decrease at a higher rate than for low-risk firms. Third, low-risk borrowers put up more collateral than high-risk borrowers, which implies the existence of a signaling effect. According to the signaling theory, low-risk firms are willing to pledge more collateral than high-risk firms. Fourth, when comparing bank and non-bank credit files, we find that bank-firm characteristics are not fully transferable to the relationship between a non-bank and a firm.

Standard economic theory suggests that capital should flow from rich countries to poor countries. However, capital has predominantly flowed to rich countries. The three essays in this dissertation attempt to explain this phenomenon. The first two essays suggest theoretical explanations for why capital has not flowed to the poor countries. The third essay empirically tests the theoretical explanations. The first essay examines the effects of increasing returns to scale on international lending and borrowing with moral hazard. Introducing increasing returns in a two-country general equilibrium model yields possible multiple equilibria and helps explain the possibility of capital flows from a poor to a rich country. I find that a borrowing country may need to borrow sufficient amounts internationally to reach a minimum investment threshold in order to invest domestically. The second essay examines how a poor country may invest in sectors with low productivity because of sovereign risk, and how collateral differences across sectors may exacerbate the problem. I model sovereign borrowing with a two-sector economy: one sector with increasing returns to scale (IRS) and one sector with diminishing returns to scale (DRS). Countries with incomes below a threshold will only invest in the DRS sector, and countries with incomes above a threshold will invest mostly in the IRS sector. The results help explain the existence of a bimodal world income distribution. The third essay empirically tests the explanations for why capital has not flowed from the rich to the poor countries, with a focus on institutions and initial capital. I find that institutional variables are a very important factor, but in contrast to other studies, I show that institutions do not account for the Lucas Paradox. Evidence of increasing returns still exists, even when controlling for institutions and other variables. In addition, I find that the determinants of capital flows may depend on whether a country is rich or poor.

Housing is one of the major problems in North America This problem becomes more acute daily in the urban centers as (1) the population explosion continues; (2) the process of urbanization increases; and (3) new household units are formed in greater numbers. Although in the United States and Canada there is no street sleeping and squatting as there is in India and other countries of Asia and South America, nevertheless, the inadequate conditions of housing of the slums and blighted areas result partially from the pressure for shelter caused by these three demographical factors. The problem of housing is essentially a problem of enabling every citizen to obtain decent accommodation at a price that he can afford. In addition to the demographic factors already mentioned, other dimensions of complexity of this problem are contributed by the fact that housing deficiencies correlate closely with low income levels, inferior employment and educational opportunities, and frequently, racial discrimination. This problem is further compounded by the increasing cost of housing construction. The search for further solutions to alleviate the housing problem, and the realization of the inter-relationship of housing standards, housing costs, and income led to the study hypothesis: That there is a certain family income level below which adequate housing cannot be obtained without assistance. A technological break-through in the housing industry can ease considerably the present housing problem. Of all man's necessities, however, housing has seen the fewest production changes in recent centuries. Until such breakthrough is achieved the existing resources must be used to combat the problem. Since the "New Deal" of the 1930's both the governments of Canada and the United States have actively participated in housing assistance and support programs. These programs, however, have not assisted the low income groups as much as the middle and upper income groups. Of over 73,000 FHA applications in 1967 only 5,000 were for a variety of social purposes which included low-income housing. The housing codes, urban renewal programs, and public housing projects have not yet sufficed to provide every North American family with a home of adequate standards. Governor Otto Kerner of Illinois, head of the Commission on a Civil Disorder, regards poor housing as one of the major causes of the social problems now facing almost every American city. A recent HUD study forecasts a need, greatest among the urban poor, for 22.5 million units of new housing in the next decade. The question is, how can this need be met? This study essentially reviews some of the methods by which government can assist low income families and households in obtaining adequate housing. The review begins with an examination of the nature of the housing problems in which the inter-relationship of housing standards, housing costs, and family incomes are analysed and evaluated. The conclusions from the review were; (1) that the costs of housing increase with the level of standard, and (2) that family income was the primary obstacle to adequate housing. The significant findings have been that a wider choice of methods of housing assistance can be adopted, as well as a wider choice of type and tenure of accommodations. Such range of choice can alleviate many of the present problems in urban renewal and relocation programs and most of all reduce the need for substandard dwelling units. In view of these findings and recognizing that adequate housing is in the interest of the family, the community, and the nation, the thesis investigates some of the ways by which the amount and method of assistance required by the low income groups may be determined if they are to be housed adequately. By means of the case study method the hypothesis was tested and verified. The most significant conclusion drawn from the case study is the substantiation of the validity of the hypothesis: That there is a certain family income level below which adequate housing cannot be obtained without assistance. This income level is established by the cost of minimum standard of socially and officially accepted housing. The measurement of this income level is therefore dependent on two factors: (1) determining what is the minimum housing standard for a family, with due regards to family size, and existing social, cultural, and official attitudes; and (2) determining what is the minimum cost of such standard of housing, with due regards to existing construction methodology and practices, technological skills, and available materials. / Applied Science, Faculty of / Community and Regional Planning (SCARP), School of / Graduate

My diploma work is about problematics of insurance and lending of local action groups. First part is focused on basic characteristics of local action groups, historical development of its financing and characteristics of MAS Šumavsko, z.s. Then I describe problematice of credit products of chosen banks on czech bank market. Next part is about detailed analysis of credits and insurance products od MAS Šumavsko, process of using and comparison in time. The last part of my diploma works is focused on proposals and recommendations for MAS Šumavsko in the field of financing, lending and insurance.

abstract: In this paper, I study many-to-one matching markets in a dynamic framework with the following features: Matching is irreversible, participants exogenously join the market over time, each agent is restricted by a quota, and agents are perfectly patient. A form of strategic behavior in such markets emerges: The side with many slots can manipulate the subsequent matching market in their favor via earlier matchings. In such a setting, a natural question arises: Is it possible to analyze a dynamic many-to-one matching market as if it were either a static many-to-one or a dynamic one-to-one market? First, I provide sufficient conditions under which the answer is yes. Second, I show that if these conditions are not met, then the early matchings are "inferior" to the subsequent matchings. Lastly, I extend the model to allow agents on one side to endogenously decide when to join the market. Using this extension, I provide a rationale for the small amount of unraveling observed in the United States (US) medical residency matching market compared to the US college-admissions system. Micro Finance Institutions (MFIs) are designed to improve the welfare of the poor. Group lending with joint liability is the standard contract used by these institutions. Such a contract performs two roles: it affects the composition of the groups that form, and determines the properties of risk-sharing among their members. Even though the literature suggests that groups consist of members with similar characteristics, there is evidence also of groups with heterogeneous agents. The underlying reason is that the literature lacked the risk-sharing behavior of the agents within a group. This paper develops a model of group lending where agents form groups, obtain capital from the MFI, and share risks among themselves. First, I show that joint liability introduces inefficiency for risk-averse agents. Moreover, the composition of the groups is not always homogeneous once risk-sharing is on the table. / Dissertation/Thesis / Doctoral Dissertation Economics 2020

<p>Purpose - The goal of this study is to identify the current distinct market segments within the US agricultural credit lending market, predict segment membership based on readily available characteristics, and better understand farmer financing preferences. </p> <p><br></p> <p>Design/methodology/approach - A two stage clustering analysis was used to identify five distinct market segments. A multinomial logit regression was used to predict segment membership based on demographic and psychographic characteristics. </p> <p><br></p> <p>Findings - The segmentation analysis produced five distinct market segments. The identified segments are service, convenience, balance, price, and performance. </p> <p><br></p> <p>Practical implications - This information can aid credit lenders in segmenting the market and tailoring their sales approach to the different farmer segments. </p> <p><br></p> <p>Originality/value - This paper contributes to the literature in several ways. First, previous studies of farmer selection of lending institutions rely on supply side data (Brewer et al., 2019; Dodson & Koenig, 2004; Ifft and Fiechter, 2020). While these studies are useful in knowing how farmers may be segmented according to their choice set of particular lending institutions, what we cannot examine is why the farmer is choosing that choice set. Our study incorporates psychographic and buying preferences. Prior work has highlighted the trend away from demographics and socioeconomic characteristics towards psychographic characteristics as categories for customer segmentation (Sherrick et al., 1994). Secondly, as described above, much has changed in the agricultural lending markets concerning the lending institutions available to farmers and the technology that changes how farmers and lending institutions interact. Thus, this study updates the literature as farmers preferences may have changed due to the new market structure </p>

The purpose of this study was to define and describe the nature of predatory mortgage lending in the state of Utah . Twelve professionals from the state who work in the mortgage lending market participated. Data consisted of interviewee comments and were analyzed qualitatively using a multi-step method of coding for concepts and themes. Through coding and analysis it was determined that the term predatory mortgage lend ing is defined as an act of abuse that is targeted towards a borrower with one or more vulnerable characteristics. It was al so found that users of this term do not always adhere to this strict definition, but rather use it as a catch-all term for any general mortgage abuse, rather than only for those that are targeted. The term is al so used when referring to instances of fraud, and nearly all other forms of unfair lending. To help increase the measurability of predatory lending, the interviews also gave descriptive detail in terms of its magnitude, underlying factors, commonly occurring practices, victim characteristics, impacts, and suggestions for reduction. Suggestions for reduction of predatory lending include increasing accountability of actors, both legally and by the industry itself bridging state and national jurisdictional gaps, and increasing fun ding for consumer education and neighborhood revitalization. Education was especially emphasized as a tool for preventing occurrences of predatory mortgage lending. not only in the form of pre-homebuyer education but especially in the form of financial education as a requirement in the public school s, beginning at a very young age.

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Выпускная квалификационная работа (магистерская диссертация) посвящена исследованию проблем организации потребительского кредитования. Предметом исследования выступают экономические отношения, возникающие в процессе организации потребительского кредитования в банковских организациях. Основной целью магистерской диссертации является выявление проблем на основании теоретических и практических основ организации банковского потребительского кредитования. В заключении обозначены рекомендации по решению проблем организации банковского потребительского кредитования. / Final qualifying work (master's thesis) is devoted to the study of the problems of organizing consumer lending. The subject of the research is the economic relations arising in the process of organizing consumer lending in banking organizations. The main purpose of the master's thesis is to identify problems on the basis of theoretical and practical foundations of the organization of banking consumer lending. In the conclusion of the marked recommendations for solving problems of the organization of banking consumer lending.