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Conference Paper
Distance and information asymmetries in lending decisions
Working Paper
The choice between arm's-length and relationship debt: evidence from e-loans
Using a unique sample of comparable online and in-person loan transactions, we study the determinants of arm's-length and inside lending focusing on the differential information content across debt types. We find that soft private information primarily underlies relationship lending whereas hard public information drives arm's-length debt. The bank's relative reliance on public or private information in lending decisions then determines trade-offs between the availability and pricing of credit across loan types. Consistent with economic theory, relationship debt leads to informational capture ...
Conference Paper
Relationship banking, loan specialization and competition