Lending relationships and credit rationing: the impact of securitization

Do lending relationships mitigate credit rationing? Does securitization influence the impact of lending relationships on credit rationing? If so, is its impact differently in normal periods versus crisis periods? This paper combines several unique data sets to address these questions. Employing a disequilibrium model to identify credit rationing, we find that more intense lending relationships, measured through their length and lower number, considerable improve credit supply and reduce the degree of credit rationing. In general, we find that a relationship with a bank that is more involved in securitization activities relaxes credit constraints in normal periods; however, it also increases credit rationing during crisis periods. Finally, we study the impact of different types of securitization – covered bonds and mortgage-backed securities (MBS) – on credit rationing. While both types of securitization reduce credit rationing in normal periods, the issuance of MBS by a firm’s main bank aggravates these firm’s credit rationing in crisis periods.lending relationships;financial crisis;securitization

The role of interchange fees in two-sided markets: An empirical investigation on payment cards

We study the impact of reductions in interchange fees on payment card services. We find that consumer and merchant acceptance and transaction volumes increased when interchange fees were reduced. Our results suggest that a 10 percent reduction in the rate of decline per quarter in the average interchange fee by an acquirer resulted in a rate of increase in merchant acceptance per quarter of up to 1.4 percent. Additionally, a 10 percent increase in the rate of interaction of merchant acceptance and the total number of cards increased the rate of quarterly issuer transaction volumes up to 1.7 percent

Measurements of thermodynamic and transport properties of EuC2_2: a low-temperature analogue of EuO

EuC$_2$ is a ferromagnet with a Curie-temperature of $T_C \simeq 15\,$K. It is semiconducting with the particularity that the resistivity drops by about 5 orders of magnitude on cooling through $T_C$, which is therefore called a metal-insulator transition. In this paper we study the magnetization, specific heat, thermal expansion, and the resistivity around this ferromagnetic transition on high-quality EuC$_2$ samples. At $T_C$ we observe well defined anomalies in the specific heat $c_p(T)$ and thermal expansion $\alpha(T)$ data. The magnetic contributions of $c_p(T)$ and $\alpha(T)$ can satisfactorily be described within a mean-field theory, taking into account the magnetization data. In zero magnetic field the magnetic contributions of the specific heat and thermal expansion fulfill a Gr\"uneisen-scaling, which is not preserved in finite fields. From an estimation of the pressure dependence of $T_C$ via Ehrenfest's relation, we expect a considerable increase of $T_C$ under applied pressure due to a strong spin-lattice coupling. Furthermore the influence of weak off stoichiometries $\delta$ in EuC$_{2 \pm \delta}$ was studied. It is found that $\delta$ strongly affects the resistivity, but hardly changes the transition temperature. In all these aspects, the behavior of EuC$_2$ strongly resembles that of EuO.Comment: 7 pages, 6 figure

The diffusion pattern of non-cash payments: evidence from China

Exploiting an original dataset of non-cash payments during the period between 1996 and 2005, this study analyses the diffusion patterns of non-cash payments in China. Based on both exponential and Gompertz curves, the point of sale (POS) terminal has shown a higher diffusion rate than that of automatic teller machines (ATMs). This result is also robust when a time trend is interacted with rivals' precedence, network effects and market concentration. The diffusion rates of both ATM and POS terminals have accelerated after 2002, when UnionPay was established in China. The diffusion rate of ATMs is found to be mainly driven by rivals' adoption of them. Market concentration boosts the diffusion of POS terminals. In spite of the rising number of POS terminals and merchants, the volume of POS transactions is low. The diffusion rate of POS is, however, negatively affected by interchange fees

Trade credit, the Financial Crisis and Firms Access to Finance

We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the credit crisis. Using firm level panel data on over 40,000 Spanish SMEs we find that credit constrained SMEs depend on trade credit, but not bank loans, to finance capital expenditures and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on banks loans not trade credit. Overall, this suggests substitution between bank loans and trade credit that is conditional on the level of financing constraints and is more intense during the crisi

TEMPORAL AND SPATIAL DISTRIBUTION OF POACEAE POLLEN IN AREAS OF SOUTHERN UNITED KINGDOM, SPAIN AND PORTUGAL

Overall, longer Poaceae pollen seasons coincided with earlier pollen season start dates. Winter rainfall noticeably affects the intensity of Poaceae pollen seasons in Mediterranean areas, but this was not as important in Worcester. Weekly data from Worcester followed a similar pattern to that of Badajoz and Évora but at a distance of more than 1500 km and 4-5 weeks later

Participatory Action Research (PAR) Training, Course, and Community Based Projects

A Participatory Action Research (PAR) collaboration between a group of Latinx immigrant mothers by the name of Madres Emprendedoras, Entrepreneurial Mothers, and a team of SCU undergraduate students enrolled in an ELSJ course is featured in this poster. We highlight reflections of the PAR training, course, and community based projects in the Guadalupe Washington community, a collaboration that also made possible through the Ignatian Center for Jesuit Education\u27s Thriving Neighbor Initiative

Is there a tensionless Kardar-Parisi-Zhang universality class above one dimension? An Ising model approach

The Kardar-Parisi-Zhang (KPZ) equation is a paradigm of generic scale invariance, for which it represents a conspicuous universality class. Recently, the tensionless case of this equation has been shown to provide a different universality class by itself. This class describes the -- intrinsically anomalous -- scaling of one-dimensional (1D) fronts for several physical systems that feature ballistic dynamics. In this work, we show that the evolution of certain 1D fronts defined for a 2D Ising system also belongs to the tensionless KPZ universality class. Nevertheless, the Ising fronts exhibit multiscaling, at variance with the continuous equation. The discrete nature of these fronts provides an alternative approach to assess the dynamics for the 2D front case (for a 3D Ising system), since the direct integration of the tensionless KPZ equation blows up in this case. In spite of the agreement between the 1D scaling of the Ising fronts and the tensionless KPZ equation, the fluctuation statistics in 1D and the full behavior in 2D are strongly conditioned by boundary effects.Comment: 9 pages, 9 figure