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This study examines agricultural lending by commercial banks and the competition they face from the Farm Credit System (FCS) and non-traditional lenders, including merchants, dealers and other input suppliers.

We construct a measure of commercial banks' perceived competition with FCS or non-traditional lenders using the individual responses to the Federal Reserve Bank of Chicago's Land Values and Credit Conditions Survey between 1999 and 2019. Through regression analysis of an unbalanced panel of survey responses, we present a number of stylized facts on the relationship between perceived competition and farm loan rate spreads, collateral requirements, loan delinquencies and expected lending volumes.

Our analysis shows that the two sources of competition have very different effects on commercial bank lending terms, loan portfolio riskiness and expected loan volumes. With these results in mind, we offer a number of suggestions for future research.

We leverage the unique characteristics of the Land Values and Credit Conditions Survey to examine the competition with non-traditional lenders that cannot be observed using administrative data.

Aims to investigate the reliability of two of the criteria commonly used by banks in assessing the risks associated with lending on a commercial property project. The two criteria to be examined are loan to value and income to interest cover covenants. In the light of the research, suggests improvements and modifications on how these and other criteria are used to aid lenders in their decision‐making process. The time period chosen for this study is 1984 to 1994, a decade which saw the banks enter and then retreat from the property lending market on a scale hitherto unknown in the UK, with a number of these institutions incurring unprecedented losses. Compiled initially from an analysis of published property statistics on yields, capital values and interest rates, theoretical conclusions were then made on the reliability of the two criteria under discussion. Having identified the years 1984, 1987 and 1989 as being key turning‐points in the property cycle, these conclusions were “tested” by empirical research. Between May and July 1994 13 interviews were carried out with banks that had been active in commercial property lending for all or part of the relevant period. The interviews were based on a questionnaire which established the banks′ attitude to lending at each of the specified dates. Thus it was possible to identify how the banks′ attitude changed and how reliable the covenants proved to be in practice. First, demonstrates the fluctuations in interest rates, yields and capital values between 1984 and 1994, which resulted in the reliability of loan to value and income to interest cover covenants being examined. Second, presents the findings of the interviews with the banks for each of the years 1984, 1987 and 1989. Third, reaches conclusions and makes recommendations as to the use of the two covenants under discussion as well as considering additional criteria that are important to commercial property lending.

The purpose of this paper is to analyze the vertical disintegration of the bank loan origination value chain. This paper conducts a study on the credit information market from the perspective of the bank’s decision to vertically disintegrate the loan origination value chain. The main aim is to identify the relevant drivers of the decision to vertically disintegrate the credit assessment phase in the lending business.

Transaction cost economics and information asymmetry are the typical perspectives of analysis of the vertical scope of business value chains.

This paper argues that in order to capture the drivers underlying the dynamic evolution of the vertical scope of bank loan origination business models, the above perspectives must be combined and integrated further with a resource-based view and the modularity perspective. Combining managerial and financial perspectives, this paper offers an examination of the drivers of vertical disintegration in the lending value chain and, specifically, in the credit assessment phase.

Although the existence of substantial research on value chain vertical integration/disintegration in the literature, none has directly focussed on the credit assessment value chain. It leaves a gap that the paper aims to overcome. The value chain disintegration has deep managerial and financial implications at firm and industry levels, and the comprehension of the rational underlying it is critical to maintaining competitive business model configurations in the bank lending industry.

The purpose of this paper is to investigate the statistical correlation properties of the Shanghai Interbank Offered Rate (SHIBOR) interbank lending market.

The authors apply methods of correlation analysis, random matrix theory (RMT) and minimum spanning tree (MST) to investigate the correlation properties of Chinese interbank lending market and analyze how the SHIBOR panel banks behave in different market periods.

First, the largest eigenvalue λ ₁ is the index to describe the market mode of the whole market when all banks behavior collectively and λ ₁/N is a good estimator of the average correlation <C> of the correlation matrix. Second, notably, the authors find the “market mode” is weakened in two crises periods of 2008 stock market crash and 2009 Global Financial Crisis. This is significantly different from other market where the “market mode” is normally strengthened in crises periods. Third, the authors subtract the contribution of λ ₁, the second and third eigenvalue, λ ₂ and λ ₃, will fall outside of the predicted interval. And both λ ₂ and λ ₃ are getting times larger in the crises periods than in “Non-Crisis” period. Fourth, and in the MST analysis, the authors find again that the average distances of the MST are the times larger in crises periods than in “Non-Crisis” period and the second largest eigenvalue is a good estimator of the average distance of the MST.

According to the best knowledge, this paper is the first work on the study of the statistical properties of an interbank lending market using quotation level data of panel banks, which allows us to analyze the properties of the interest rate formation and how all panel banks behavior in different periods. This work is also the first study on the SHIBOR market using econophysics methods of correlation analysis, RMT and MST.

I contribute to the ongoing policy discourse on the challenges of monetary policy transmission in environments with consolidated financial sectors and high credit rates. I empirically investigate the lending rate pass-through in Azerbaijan – a small resource-rich economy in transition – by taking advantage of a unique set of high-frequency bank-level data. My bottom-line policy message is the following. First, lending rates are considerably irresponsive to monetary policy shocks, and the interest rate channel ought to be somehow improved. Second, macroeconomic fundamentals and the concentrated bank sector are surprisingly not among the reasons behind the policy-market disconnect. Third, domestic commercial banks are able to exert substantial monopolistic pricing capacities and keep credit rates high, particularly when the central bank loosens its policy stance. Fourth, the underlying cause of both monetary policy inefficacy and high interest rate stickiness appears to be structural excess liquidity. In fact, empirical results show that pass-through is substantially higher for less liquid banks. Extraction of excess liquidity from the system should mitigate the banks’ monopolistic pricing powers, improve the efficiency of the interest rate channel, and ultimately bring the credit rates down.

The article investigates the institutional setup of e-lending in public libraries in Denmark, Norway and Sweden. Our point of departure is that e-lending has necessitated new library collaborations between local, regional and national levels, and therefore, institutional e-lending setups have emerged. The study seeks to provide better understanding of how the institutional setups are structured, how governance logics have shaped them and what tensions and dynamics become visible in the key actors’ problematisations of these setups.

The study is situated in the neo-institutional tradition and applies the institutional logics perspective. The research questions are answered by taking a qualitative approach, grounded in an extensive interview study with representatives of libraries, publishers and policy actors in three Scandinavian countries. To provide in-depth insight into e-lending setups, the scope of empirical material is then limited to accounts the central library and policy actors involved in establishing e-lending.

The analysis shows that the e-lending setups are both similar (especially when it comes to financing), and different across Scandinavia, especially when it comes to centralisation and involvement of librarians in this task. The differences are attributed to the influence of different governance logics (question of administrative autonomy, collaboration in the field and existing legal and political frames), and to what extent the digital and market logics are incorporated or rejected in the field.

The study provides new insights into the question of how Scandinavian public libraries face the consequences of the digitalisation of book distribution and consumption by investigating how they organise their e-lending services. This has not been explored before, notably in a comparative perspective.

We analyze the impact of monetary policy instruments on interbank lending rates and retail bank lending in China using an extended version of the model developed by Porter and Xu (2009). Unlike the central banks of advanced economies, the People’s Bank of China (PBoC) uses changes in the required reserve ratios and open market operations to influence liquidity in money markets and adjusts the regulated deposit and lending rates and loan targets to intervene in the retail deposit and lending market. These interventions prevent the interbank lending rate from signaling monetary policy stance and transmitting the effect of policy to the growth of bank loans. Since the global financial crisis, the PBoC’s monetary policy has gone through a full cycle. The combining effects of using different policy instruments simultaneously within a short period of time were quite effective in bringing the credit and money growth in line with its desired level. Most recently steps have been taken to speed up the interest rate liberalization. Effective July 2013, the PBoC removed the floors of the benchmark lending rates.

This paper offers empirical evidence on factors influencing credit spreads on commercial mortgage loans. It extends existing work on the pricing of commercial mortgage loans. The authors examine the relative significance of a range of factors on loan pricing that are lender, asset and loan specific. The research explores and quantifies the sources of spread differentials among commercial mortgage loans. The paper contributes to a limited literature on the subject and serves the purpose of price discovery in commercial property lending. It offers a framework to compare actual pricing with fundamental-based estimates of loan spreads.

Panel analysis is deployed to examine the cross-section and time-series determinants of commercial mortgage loan margins and credit spreads. Using an exclusive database of loan portfolios in the United Kingdom (UK), the panel analysis enables the authors to analyse and quantify the impact of a number of theory-consistent and plausible factors determining the cost of lending to commercial real estate (CRE), including type and origin of lender, loan size, loan to value (LTV) and characteristics of asset financed – type, location and grade.

Spreads on commercial mortgages and, therefore, loan pricing differ by the type of lender – bank, insurance company and debt fund. The property sector is another significant risk factor lenders price in. The LTV ratio has increased in importance since 2012. Prior to global financial crisis (GFC), lenders made little distinction in pricing different LTVs. Loans secured in secondary assets command a higher premium of 50–60bps. The analysis establishes an average premium of 35bps for loans advanced in regions compared to London. London is particularly seen a less risky region for loan advancements in the post-GFC era.

The study considers the role of lender characteristics and the changing regulation in the pricing of commercial mortgage loans and provides a framework to study spreads or pricing in this market that can include additional fundamental influences, such as terms of individual loans. The ultimate aim of such research is to assess whether mortgage loans are correctly priced and spotting risks emanating from actual loan spreads being lower than fundamental-based spreads pointing to tight pricing and over-lending.

The analysis provides evidence on lender criteria that determine the cost of loans. The study confirms that differences in regulation affect loan pricing. The regulatory impact is most visible in the increased significance of LTV. In that sense, regulation has been effective in restricting lending at high LTV levels.

The paper exploits a database of a commercial mortgage loan portfolio to make loan pricing more transparent to the different types of lender and borrowers. Lenders can use the estimates to assess whether commercial loans are fairly priced. Borrowers better understand the relative significance of risk factors affecting margins and the price they are charged. The results of this paper are of value to regulators as they can assist to understand the determinants of loan margins and gauge conditions in the lending market.

Internet + and Electronic Business in China is a comprehensive resource that provides insight and analysis into E-commerce in China and how it has revolutionized and continues to revolutionize business and society. Split into four distinct sections, the book first lays out the theoretical foundations and fundamental concepts of E-Business before moving on to look at internet+ innovation models and their applications in different industries such as agriculture, finance and commerce. The book then provides a comprehensive analysis of E-business platforms and their applications in China before finishing with four comprehensive case studies of major E-business projects, providing readers with successful examples of implementing E-Business entrepreneurship projects.

Internet + and Electronic Business in China is a comprehensive resource that provides insights and analysis into how E-commerce has revolutionized and continues to revolutionize business and society in China.