Original paper

Banks and Borrower Networks: To Lend or Not to Lend?

Published: Jan 1, 2019
Abstract
Banks remain the most important credit source globally despite large-scale financial development. However, banking continues to be plagued by rising costs and information asymmetry. In this context, we show how an additional borrower characteristic, specifically the borrower’s network strength, helps reduce costs by altering the bank’s lending decisions. The literature on borrower network remains largely empirical and borrower-based. We fill...
Paper Details
Title
Banks and Borrower Networks: To Lend or Not to Lend?
Published Date
Jan 1, 2019
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