Search

A study of the recent literature on relationship lending and the effects of relationship lending in different contexts and the findings are presented.

Lawrence Goldberg (*) Charles A. Capone, Jr. (**) This study advances the commercial mortgage literature by providing theory and methods for incorporating both equity and cash-flow considerations in default models. [...]

The funding of thrifts between 1984 and 1994 in the US using uninsured deposits is examined and analyzed. There was a declining proportion of uninsured deposits at failed thrifts.

Byline: Allen N. Berger (3), Lawrence G. Goldberg (4), Lawrence J. White (5) Keywords: bank; mergers; small business Abstract: We study the effects of structural changes in banking markets on the supply of credit to small businesses. Specifically, we examine whether bank mergers and acquisitions (M &amp As) and entry have ``external'' effects on small business loans by other banks in the same local markets. The results suggest modest positive external effects from these dynamic changes in competition, except that large banks may reduce small business lending in reaction to entry. We confirm bank size and age as important determinants of this lending, and show that the measured age effect does not appear to be driven by local market M &amp A activity. Author Affiliation: (1) Board of Governors, Federal Reserve System, Washington, DC, 20551, U.S.A. (2) Wharton Financial Institutions Center, Philadelphia, PA, 19104, U.S.A (3) Federal Reserve Board, Mail Stop 153, 20th and C Sts. NW, Washington, DC, 20551, Phone (4) Department of Finance, University of Miami, Coral Gables, FL, 33124, U.S.A (5) Stern School of Business, New York University, New York, NY, 10012-1126, U.S.A Article History: Registration Date: 12/10/2004

The failure of large numbers of banks and thrift institutions in the 1980s and early 1990s drained the federal deposit insurance funds and led to proposals to reduce deposit insurance [...]

A review of the historical patterns of external borrowings by Latin American countries from the 1970s to the 1990s is presented. The debt of Latin American countries increased by 27% annually from 1970 to 1981, a rate which decreased to 4.3% annually from 1982 to 1992. The changes in Latin American debt was examined in a time series model which incorporated the demand for loans, cost of borrowing, gross national product, GNP growth rate and the balance of payments. There was a positive correlation between GNP and GNP growth and the growth of foreign debt while there was negative correlation between trade balance the growth of foreign debt.

A study was conducted on the factors which affect foreign banking entry, activity and growth in states, as measured by assets or offices. Results revealed that foreign banks prefer to establish a presence in states with large bank market sizes and permissive entry regulations. In addition, these banks were found to choose states which boast of a large amount of foreign direct investments.

Price volatility is the most important determinant of margin levels in foreign exchange futures markets. It is also the most important factor for determining the default probability of a financial futures contract. However, no consistent relationship can be established between margin changes and price volatility. Government replacement of exchanges in the margin setting role to alter trading behavior is therefore not deemed feasible.