Lending Booms and Lending Standards

By Giovanni Dell'Ariccia, Robert Marquez. 2006

858 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/c92a2efd025dc46f24902dfd301094488a678dc2

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Citations in the corpus

Does bank competition reduce cost of credit? Cross-country evidence from Europe (2017, background): “Thus, a higher level of bank competition lowers investment in banking relationships and impairs access to credit (Petersen and Rajan, 1995; Dell’Ariccia and Marquez, 2006).”
Inequality, credit and financial crises (2016, background): “This evidence is consistent with the conceptual explanations provided by the literature (see, e.g., Gosh, 2010; Dell’Ariccia and Marquez, 2006; Gourinchas et al., 2001) and well-established empirical findings (see, e.”
Bank Risk During the Financial Crisis: Do Business Models Matter? (2011, background): “17 ECB Working Paper Series No 1394 November 2011 new geographic markets, or gain market share, loosening credit standards in the process (e.g. Dell’Ariccia and Marquez, 2006; Ruckes, 2004).”
Banking Competition and Capital Ratios (2007, neutral): “Most studies suggest a negative relationship between credit growth and capital ratios, suggesting that excessive lending is associated with the relaxing of capital ratios (Dell'Ariccia and Marquez, 2006).”
Bank profitability and risk-taking under low interest rates (2017, background): “Dell'Ariccia & Marquez (2006) find that low interest rates reduce adverse selection problems and thereby may decrease bank screening, increasing the probability of granting loans to more risky debtors.”
Macroprudential Policy, Countercyclical Bank Capital Buffers, and Credit Supply: Evidence from the Spanish Dynamic Provisioning Experiments (2017, neutral): “The smoothing of bank credit supply cycles will further generate positive firm-level real effects if credit substitution for firms is more difficult in bad times (Dell’Ariccia and Marquez (2006)) and bank-firm relationships are important (Fama (1985)).”
Why Does Fast Loan Growth Predict Poor Performance for Banks (2018, neutral): “Dell’Ariccia and Marquez (2006) show that increases in the demand for loans can lead to a decrease in credit standards when screening becomes less valuable.”