The Political Economy of Bank Lending : Evidence from an Emerging Market

This study investigates the existence of political rents in bank lending, using a comprehensive loan-level data set of the universe of commercial loans in Mexico from 2003 to 2012. Identification relies on changes in the state of origin of a senate...

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Bibliographic Details
Main Authors:	Agarwal, Sumit, Morais, Bernardo, Ruiz, Claudia, Zhang, Jian
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	EMPLOYMENT MONETARY POLICY BORROWER BASIS POINTS INTEREST INCOME GOVERNMENT BANK INDIVIDUAL LOANS CHECKS ACCOUNTING INTEREST RATE SPREAD SMALL BANKS BANKING INDUSTRY INFORMATION SYSTEM LOAN PERFORMANCE INTEREST LAWS DUMMY VARIABLES LOAN MARKET CREDIT AVAILABILITY PRIVATIZATION INDUSTRY INTEREST RATE EXCHANGE STRATEGIES RESOURCE ALLOCATION LIQUIDITY SERVICES DEVELOPING COUNTRIES DEBTOR GOVERNMENT BORROWING PUBLIC SERVICES POLITICAL ECONOMY DEFAULT PROBABILITY HOUSING REVENUES POSITIVE COEFFICIENT MORTGAGE LOAN SPREADS LOAN ASYMMETRIC INFORMATION BUDGET CONSTRAINTS RENEGOTIATION PROJECTS PROBABILITY OF DEFAULT BORROWERS TAX NON-PERFORMING LOANS TREATIES DUMMY VARIABLE SAVING RESERVE BANKRUPTCY LOAN CONTRACT BENEFICIARIES INTERNATIONAL BANK SOFT BUDGET CONSTRAINTS LENDER INSTRUMENTS BUDGET BANK LENDING TERMS OF CREDIT MATURITY SMALL BUSINESS CAPITAL ALLOCATION SAVINGS CREDIT WORTHINESS COLLATERAL REQUIREMENT TELECOMMUNICATIONS MORAL HAZARD COMMERCIAL BANK BANK PRIVATIZATION TRANSPORT CONSUMER CREDIT FINANCIAL STUDIES PORTFOLIOS DEBTS CONTRACTS FINANCES PRIVATE BANKS TRADING PRODUCTIVITY OPTIONS LENDING DECISIONS EMERGING MARKET DOMESTIC BANKS MARKETS DEBT RETURN LEGISLATION LOAN MATURITY BUSINESS CYCLE GOVERNMENT BORROWINGS BANK LIQUIDITY INTERNATIONAL ECONOMICS BASIS POINT SOFT BUDGET CONSTRAINT LOANS LABOR PUBLIC SECTOR BANKS INVESTMENT OPPORTUNITIES ENTERPRISES SMALL BORROWERS FINANCE LOAN TERMS TAXES BANKING SECTOR BANK BALANCE SHEET BAILOUT BANKS TRANSACTIONS MACROECONOMIC ENVIRONMENT BUDGET CONSTRAINT FEDERAL RESERVE GOOD ACCOUNTABILITY BAD DEBTS COMMERCIAL CREDIT OWNERSHIP STRUCTURE MARKET FAILURES ACCESS TO CAPITAL FINANCIAL CRISIS LOAN QUANTITIES FUTURE VALUE SUPPLY OF CREDIT SMALL BUSINESS LENDING GOVERNMENT BANKS DEFAULT RATES BANK RETURNS CREDIT CONTRACT REGULATORY REPORTS FOREIGN BANKS COMMERCIAL LOANS SHARES LOAN SPREAD BALANCE SHEET MARKET DEFAULT LOAN DEMAND INSIDER TRADING ECONOMICS SECURITIES TREASURY LENDING DECISION GOVERNANCE SHAREHOLDERS BUSINESS CYCLES TAXATION ECONOMIC DEVELOPMENT CORPORATE DEBT PUBLIC SAVING BANK LOANS FINANCIAL MARKET LOAN VOLUME INVESTMENT OUTSTANDING DEBT RISK COMMERCIAL BANKS SHARE LOAN PORTFOLIOS COLLATERAL BALANCE SHEETS CREDIT QUALITY FINANCIAL INFORMATION LOAN SIZE FINANCIAL MARKETS DEFAULT RATE BANKING BANK SUPERVISION REVENUE PROFIT OUTSTANDING AMOUNT BORROWING LENDING CHECK GOVERNMENT LENDING MATURITIES PUBLIC BANKS PUBLIC SPENDING LIABILITIES GOVERNMENTS ARREARS BANK SIZE GUARANTEE ECONOMIC CONDITIONS FOREIGN BANK LENDING INSTITUTIONS CREDIT MARKET LOAN DATA DEBT MATURITY
Online Access:	http://documents.worldbank.org/curated/en/2016/02/25970617/political-economy-bank-lending-evidence-emerging-market http://hdl.handle.net/10986/23915