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

HCO3- enrichment causes cytosolic NO3- efflux in Posidonia oceanica leaf cells

Posidonia oceanica is a seagrass, the only group of vascular plants to colonize the marine environment. Seawater is an extreme yet stable environment, characterized by high salinity, alkaline pH and low availability of essential nutrients, such as nitrate or phosphate. In addition, in aquatic environments the supply of CO2 for the photosynthesis is limited by diffusion and therefore many aquatic plants use HCO3- as the inorganic carbon source for photosynthesis. Previous results have shown that Na+ -dependent transport systems operate on the plasma membrane of P. oceanica mesophyll leaf cells for the high-affinity NO3-, Pi or amino acids uptake. Also, a direct transport of HCO3- driven by H+ has been found in this species that provides inorganic carbon for photosynthesis and could be a significant component of a carbon concentrating mechanism in this species. Interestingly, this HCO3- direct uptake caused the efflux of chloride from the cytosol, probably through S-type anion channels, pointing that other anions could also be removed from the cytosol. This hypothesis could be relevant in the case of NO3-, since the decrease of cytosolic NO3- in response to HCO3- enrichment could limit N-assimilation. Here we analyse the effect of HCO3- increase on NO3- uptake and cytosolic homeostasis in P. oceanica. Enrichment of natural seawater with 3 mM HCO3- evokes the on-going decrease of cytosolic NO3-, from 5.7 ± 0.2 to 4.8 ± 0.7 mM after 40 min of treatment. The incubation of P. oceanica leaf pieces in 3 mM HCO3- NSW causes an initial increase of NO3- concentration in the medium. Maximum efflux (21 nmol NO3- gFM-1 min-1) occurs within the first minute of incubation. Then, external NO3- is depleted from the medium at lower net uptake rate than the value observed in non HCO3- -enriched natural seawater. These results fit the hypothesis that HCO3- enrichment causes the nitrogen loose and could impair nitrogen assimilation promoting N biomass impoverishment.Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech. Spanish MINECO, projects BFU2017-85117-R and BIO2016-81957-RED

NRT2.5 a putative sodium dependent high affinity nitrate trasnporter of zostera marina l.

Seagrasses are the only group of vascular plants that recolonized the marine environment, possibly the most severe habitat shift ever accomplished by flowering plants. These plants have regained functions enabling them to thrive in liquid medium with an extremely high salinity (0.5 M Na+), high alkaline conditions (pH 8.2) and very low concentration of essential nutrients as NO3- or Pi. Despite this, seagrasses form one of the highest productive and widespread ecosystems of the planet (Larkum et al., 2006). Zostera marina was the first seagrass fully sequenced and its genome reveals important insights about this secondary adaption. Comparison with land plants indicates that less than 20 % of the genes families are specific in the genome of seagrasses. Thus, adaptation to marine environment seems to be due to molecular changes of the same family genes rather that the speciation of pre-existing genes. This appears to be the case of the high affinity nitrate transporter belonging to the NRT family. In contrast to terrestrial vascular plants, where NRT2 encode high affinity NO3- transporters that operate as H+ symporters, our electrophysiological analysis indicate that in Z. marina high affinity NO3- uptake is mediated by a Na+-dependent mechanism. A detailed analysis of the Z. marina genome indicates the presence of only one gene encoding for this type of transporter: Zosma70g00300.1. Phylogenetic analysis shows that this high affinity nitrate transporter is more related to NRT2.5 than to NTRT2.1, sharing a common ancestor with both, monocot and dicot plants. We have cloned Zosma70g00300.1 and the high-affinity nitrate transporter accessory protein NAR2 (Zosma63g00220.1) in order to characterize the specific transport mechanism mediated by these proteins in Z. marina. Thus, the putative Z. marina NRT2.5 transporter could have evolved to use Na+ as a driving ion, which might be an essential adaptation of seagrasses to colonize the marine environment.MICINN (BFU2017-85117-R; BIO2016-81957-REDT) Universidad de Málaga. Campus de Excelencia Internacional Andalucía Tech

Investigating Diversity in the Banking Sector in Europe: The Performance and Role of Savings Banks. CEPS Paperbacks. June 2009

In the aftermath of the financial crisis, the foundations of modern and innovative financial systems developed over decades have suffered serious damage. This has triggered massive state interventions and has led authorities to revamp the regulatory structures and frameworks. While many voices have called for a return to more traditional approaches to banking and finance, no one has argued the merits of diversity. This book investigates the merits of a diverse banking system with a special focus on the performance and role of savings banks in selected European countries where they are still prominent (Austria, Germany and Spain) and where they have progressively disappeared (Belgium and Italy). The theoretical and empirical arguments that are developed in this book tend to support the view that it is economically and socially beneficial to have ‘dual bottom-line’ institutions, such as savings banks. For those who accept this premise, it would suggest that policy-makers should not take or support actions that could jeopardise this valuable element of the financial system in various countries in Europe and of the emerging integrated European financial system

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

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

Particles adsorbed at various non-aqueous liquid-liquid interfaces

Particles adsorbed at liquid interfaces are commonly used to stabilise water-oil Pickering emulsions and water-air foams. The fundamental understanding of the physics of particles adsorbed at water-air and water-oil interfaces is improving significantly due to novel techniques that enable the measurement of the contact angle of individual particles at a given interface. The case of non-aqueous interfaces and emulsions is less studied in the literature. Non-aqueous liquid-liquid interfaces in which water is replaced by other polar solvents have properties similar to those of water-oil interfaces. Nanocomposites of non-aqueous immiscible polymer blends containing inorganic particles at the interface are of great interest industrially and consequently more work has been devoted to them. By contrast, the behaviour of particles adsorbed at oil-oil interfaces in which both oils are immiscible and of low dielectric constant (ε < 3) is scarcely studied. Hydrophobic particles are required to stabilise these oil-oil emulsions due to their irreversible adsorption, high interfacial activity and elastic shell behaviour