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dc.contributor.authorCerqueiro, Geraldoen_US
dc.contributor.authorDegryse, Hansen_US
dc.contributor.authorOngena, Stevenen_US
dc.date.accessioned2008-01-02en_US
dc.date.accessioned2009-07-28T08:16:21Z-
dc.date.available2009-07-28T08:16:21Z-
dc.date.issued2007en_US
dc.identifier.urihttp://hdl.handle.net/10419/26136-
dc.description.abstractWe propose a heteroscedastic regression model to identify the determinants of the dispersion in interest rates on loans granted to small and medium sized enterprises. We interpret unexplained deviations as evidence of the banks’ discretionary use of market power in the loan rate setting process. “Discretion” in the loan-pricing process is most important, we find, if: (i) loans are small and uncollateralized; (ii) firms are small, risky and difficult to monitor; (iii) firms’ owners are older, and, (iv) the banking market where the firm operates is large and highly concentrated. We also find that the weight of “discretion” in loan rates of small credits to opaque firms has decreased somewhat over the last fifteen years, consistent with the proliferation of information-technologies in the banking industry. Overall, our results reflect the relevance in the credit market of the costs firms face in searching information and switching lenders.en_US
dc.language.isoengen_US
dc.publisherCESifo Münchenen_US
dc.relation.ispartofseriesCESifo working paper 2091en_US
dc.subject.jelG21en_US
dc.subject.jelL11en_US
dc.subject.ddc330en_US
dc.subject.stwKrediten_US
dc.subject.stwKreditgeschäften_US
dc.subject.stwPreisdifferenzierungen_US
dc.subject.stwEntscheidungstheorieen_US
dc.subject.stwDiskrete Entscheidungen_US
dc.subject.stwTheorieen_US
dc.titleRules versus discretion in loan rate settingen_US
dc.typeWorking Paperen_US
dc.identifier.ppn555934837en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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