Publications

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May 2009
Article

Asymmetric Information Effects on Loan Spreads

By: Victoria Ivashina

The paper estimates the cost arising from information asymmetry between the lead bank and members of the lending syndicate. In a lending syndicate, the lead bank retains only a fraction of the loan but acts as the intermediary between the borrower and the syndicate... View Details

Keywords: Cost; Banks and Banking; Financing and Loans; Interest Rates; Capital; Investment Portfolio; Credit; Diversification; Risk and Uncertainty

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May 2010
Article

Loan Syndication and Credit Cycles

By: Victoria Ivashina and David Scharfstein

Cyclicality in the supply of business credit has been the focus of a considerable amount of research. This cyclicality can stem from shocks to borrowers' collateral, which affect firms' ability to raise capital if agency and information problems are significant (Ben S.... View Details

Keywords: Business Cycles; Capital; Credit; Banks and Banking; Financing and Loans; System Shocks; Financial Services Industry

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Research Summary

Bad-debts provisioning at banks

By: V.G. Narayanan

I am very interested in studying loan-loss reserves and the provisioning for bad-debts at banks. View Details

Keywords: Loan Evaluation; Bad Debt Expense; Banking Industry

16 Dec 2009
News

How to restore confidence in loan securitisation

August 2013 (Revised November 2013)
Case

Gordon Brothers: Collateralizing Corporate Loans by Brands

By: Paul Healy and Maria Loumioti

The case explores the collateralization of intellectual property in a loan agreement between a highly leveraged apparel company and a large US bank. Leveraging intangibles in the credit market is a new practice that has significantly grown over the past few years.... View Details

Keywords: Intangible Assets; Accounting; Valuation; Finance; Restructuring; United States

11 Feb 2015
Research & Ideas

Politicians Benefited From Using Toxic Loans

leading bank in the market as of December 31, 2009. (Shortly thereafter, Dexia fell apart in the European debt crisis.) The data showed that so-called structured loans accounted for 20.1 percent of the 52... View Details

Keywords: by Carmen Nobel; Financial Services

13 May 2015
News

6 Reasons Businesses Are Rejected for Small Business Loans

Article

What Do State-Owned Development Banks Do? Evidence from BNDES, 2002–09

By: Sergio G. Lazzarini, Aldo Musacchio, Rodrigo Bandeira-de-Mello and Rosilene Marcon

Defendants of state-owned development banks emphasize their role in reducing capital constraints and fostering productive investment; detractors point out that they may benefit politically connected capitalists or bail out inefficient firms. We study the effect of... View Details

Keywords: State Capitalism; Development Banks; Industrial Policy; Banking Industry; Brazil

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02 Apr 2020
News

The Rush for $350 Billion in Small-Business Loans Starts Friday. Banks Have Questions.

2000
Other Unpublished Work

Private Versus Public Debt: Evidence from Firms that Replace Bank Loans with Junk Bonds

By: S. C. Gilson and J. Warner

Keywords: Borrowing and Debt; Financing and Loans; Bonds; Banking Industry

December 1991 (Revised November 1993)
Case

U.S. Bank of Washington

A vice president of the U.S. Bank of Washington, a subsidiary of U.S. Bancorp, is asked to review a $6.5 million loan request from the Redhook Ale Brewery, a Seattle-based microbrewery. The case provides an understanding of the U.S. commercial banking industry and the... View Details

Keywords: Cash Flow; Financing and Loans; Financial Statements; Commercial Banking; Banking Industry; Seattle

April 2010
Case

Jones Electrical Distribution

By: Thomas R. Piper and Jeffrey DeVolder

Jones Electrical Distribution is faced with a need for increased bank financing due to its rapid sales growth. Students must determine the reasons for the rising bank borrowing, estimate the amount of borrowing needed and assess the attractiveness of the loan to the... View Details

Keywords: Financial Analysis; Forecasting; Financing; Bank Loans; Growth Management; Cash Flow; Financing and Loans; Forecasting and Prediction; Distribution Industry

October 2013 (Revised November 2013)
Case

Blackstone and the Sale of Citigroup's Loan Portfolio

By: Victoria Ivashina and David Scharfstein

The credit boom that preceded the 2007-2009 financial crisis led to several lending practices that exposed banks to large risks. In particular, when the financial crisis unraveled, there were several billion dollars' worth of leveraged buyout (LBO) loans that were... View Details

Keywords: Restructuring; Private Equity; Insolvency and Bankruptcy; Credit Derivatives and Swaps; Financial Markets; Investment; Banking Industry; Banking Industry

01 Feb 2021
Blog Post

Choosing the Right Student Loan

be a good idea to consider these types of loans. Both domestic and international students may benefit from having a U.S. co-signer on private loans. When exploring private loan options, you may want to start with your current View Details

11 Dec 2012
News

Measuring Bank Credit Supply

September 2011
Case

China Development Bank

By: Li Jin, Matthew Preble and Aldo Sesia

In May 2011, Chairman Chen Yuan of the China Development Bank (CDB) was thinking back on CDB's financing of a major project between Petroleo Brasileiro SA (Petrobras), Brazil's state-owned oil and gas producer and China Petroleum & Chemical Corporation (Sinopec), one... View Details

Keywords: International Finance; Emerging Markets; Energy Sources; Banks and Banking; Energy Industry; Brazil; China

June 2023
Case

Accounting for Loan Losses at JPMorgan Chase: Predicting Credit Costs

By: Jonas Heese, Jung Koo Kang and James Weber

The case examines the accounting for loan losses at a large bank, how a bank sets its Allowance for Loan and Lease Losses (ALLL) on its financial statements. ALLL, and the rules that set them, determine when banks would and would not extend loans, which significantly... View Details

Keywords: Accounting Standards; Accrual Accounting; Financial Statements; Financial Reporting; Banks and Banking; Financing and Loans; Banking Industry; United States

September 1991 (Revised April 1994)
Case

First National Bank Corp. (A)

First National Bank Corp., a major regional bank in the Northeast, must decide how large a provision for credit losses to accrue in its 1990 financial statements. The recession in New England has caused serious problems in its loan portfolio. View Details

Keywords: Financing and Loans; Financial Statements; Banks and Banking; Banking Industry; Northeastern United States