Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203316
Authors: 
de Roure, Calebe
Pelizzon, Loriana
Thakor, Anjan V.
Year of Publication: 
2019
Series/Report no.: 
SAFE Working Paper No. 206
Abstract: 
We derive three testable predictions from a bank-P2P lender model of competition: (i) P2P lending grows when some banks are faced with exogenously higher regulatory costs, (ii) P2P loans are riskier than bank loans; and (iii) the risk-adjusted interest rates on P2P-loans are lower than those on bank loans. We confront these predictions with data on P2P loans and the consumer bank credit market in Germany and find empirical support. Overall, our analysis indicates the P2P lenders are bottom fishing, especially when regulatory shocks create a competitive disadvantage for some banks. Keywords: P2P lending, bank lending, competition
JEL: 
G21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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