Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19990| Title: | Bank interest margins and business start-up collateral : testing for convexity |
| Keywords: | G21 ddc:330 asymetric information bank lendig credit constraints Kreditgeschäft Unternehmensgründung Zinsspannenrechnung Kreditsicherung Asymmetrische Information Verschuldungsrestriktion Großbritannien |
| Issue Date: | 16-Oct-2013 |
| Description: | The paper investigates the relationship between bank interest rate margins and collateral for loans issued to new ventures. The analysis finds a convex U-shaped relationship. The results indicate that while provision of collateral initially reduces bank exposure to risk (through security, more optimal levels of capital and lower moral hazard among entrepreneurs) that beyond a point the positive risk-wealth association gives rise to greater risk taking propensity among entrepreneurs and ultimately higher interest rates. This indicates that a lender's pricing policy may even somewhat help to level the competitive playing field between ventures launched by higher and moderately wealthy entrepreneurs |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19990 |
| Other Identifiers: | http://hdl.handle.net/10419/19990 ppn:479745463 |
| Appears in Collections: | EconStor |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.