Free Riding in Loan Approvals : Evidence from SME Lending in Peru

Free Riding in Loan Approvals : Evidence from SME Lending in Peru

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...

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Bibliographic Details
Main Authors: Arraiz, Irani, Bruhn, Miriam, Roth, Benjamin N., Ruiz-Ortega, Claudia, Stucchi, Rodolfo
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
ASYMMETRIC INFORMATION
CREDIT MARKET COMPETITION
ACCESS TO CREDIT
ACCESS TO FINANCE
SME FINANCE
BANKING
FINANCIAL INCLUSION
Online Access:http://documents.worldbank.org/curated/en/203711575382940042/Free-Riding-in-Loan-Approvals-Evidence-from-SME-Lending-in-Peru
http://hdl.handle.net/10986/33016

Internet

http://documents.worldbank.org/curated/en/203711575382940042/Free-Riding-in-Loan-Approvals-Evidence-from-SME-Lending-in-Peru
http://hdl.handle.net/10986/33016

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