This paper provides evidence that commercial lenders in Peru free ride off their peers' screening efforts. Leveraging a discontinuity in the loan approval process of a large bank, the study finds that competing lenders responded to additional loan approvals by issuing approvals of their own. Competing lenders captured almost three-quarters of the new loans to previously financially excluded borrowers, greatly diminishing the profits accruing to the...
更多显示
详细
-
2019/12/03
-
政策研究报告
-
WPS9072
-
1
-
1
-
2019/12/03
-
Disclosed
-
Free Riding in Loan Approvals : Evidence from SME Lending in Peru
-
partner bank