LENDING COMPETITION AND LOAN SALES: A MACROECONOMIC ANALYSIS UNDER DIRECTED SEARCH

Autor:	Kevin X. D. Huang, Zhe Li, Jianfei Sun
Rok vydání:	2020
Předmět:	Economics and Econometrics media_common.quotation_subject 05 social sciences Financial system General Business Management and Accounting Interest rate Competition (economics) 0502 economics and business Financial crisis Economics Loan sale 050207 economics 050205 econometrics media_common
Zdroj:	Economic Inquiry. 59:648-661
ISSN:	1465-7295 0095-2583
Popis:	We present a macroeconomic analysis of loan sales driven by bank competition in lending and entrepreneur directed search for funding opportunities. We show how these two features of our macrofinance model can interact to reduce interest rates on loans financed via on‐balance‐sheet activities, and how this can motivate loan sales as a strategy of financing via off‐balance‐sheet activities. The results shed some light on the shift over the years preceding the global financial crisis in the practice of U.S. and European banks, from the traditional “originate‐to‐hold” model of credit provision, toward the “originate‐to‐distribute” approach for credit extension. (JEL E44, G21, G24).
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::ef66ae83c3bbcd2a2976018c4bed4666 https://doi.org/10.1111/ecin.12963 Zobrazit plný text záznamu Plný text