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  • All HBS Web  (854)
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  • 2010
  • Working Paper

Regulating for Legitimacy: Consumer Credit Access in France and America

By: J. Gunnar Trumbull
Theories of legitimate regulation have emphasized the role of governments either in fixing market failures to promote greater efficiency or in restricting the efficient functioning of markets in order to pursue public welfare goals. In either case, features of markets... View Details
Keywords: Borrowing and Debt; Credit; Financial Markets; Personal Finance; Governing Rules, Regulations, and Reforms; Business History; Business and Government Relations; Welfare; France; United States
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Trumbull, J. Gunnar. "Regulating for Legitimacy: Consumer Credit Access in France and America." Harvard Business School Working Paper, No. 11-047, November 2010.
  • 2008
  • Working Paper

A Darker Side to Decentralized Banks: Market Power and Credit Rationing in SME Lending

By: Rodrigo Canales and Ramana Nanda
We use loan-level data to study how the organizational structure of banks impacts small business lending. We find that decentralized banks—where branch managers have greater autonomy over lending decisions—give larger loans to small firms and those with "soft... View Details
Keywords: Organizational Structure; Financing and Loans; Industry Structures; Banks and Banking; Banking Industry; Mexico
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Canales, Rodrigo, and Ramana Nanda. "A Darker Side to Decentralized Banks: Market Power and Credit Rationing in SME Lending." Harvard Business School Working Paper, No. 08-101, June 2008. (Revised January 2011, August 2011.)
  • 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
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Heese, Jonas, Jung Koo Kang, and James Weber. "Accounting for Loan Losses at JPMorgan Chase: Predicting Credit Costs." Harvard Business School Case 123-042, June 2023.
  • 2010
  • Working Paper

Foreign Entry and the Mexican Banking System, 1997-2007

By: Stephen Haber and Aldo Musacchio
What is the impact of foreign bank entry on the pricing and availability of credit in developing economies? The Mexican banking system provides a quasi-experiment to address this question because in 1997 the Mexican government radically changed the laws governing the... View Details
Keywords: Developing Countries and Economies; Credit; Banks and Banking; Financing and Loans; Foreign Direct Investment; Market Entry and Exit; Business and Government Relations; Banking Industry; Mexico
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Haber, Stephen, and Aldo Musacchio. "Foreign Entry and the Mexican Banking System, 1997-2007." Harvard Business School Working Paper, No. 10-114, June 2010.
  • 08 Jun 2011
  • Lessons from the Classroom

Twenty-first Century Skill: Trading Carbon Credits

Cap and trade has become an increasingly popular mechanism used by governments to induce green behavior among corporate polluters, with news emerging almost daily. Just recently New Jersey Governor Chris Christie withdrew his state from the Regional Greenhouse Gas... View Details
Keywords: by Julia Hanna; Energy; Utilities
  • Fall 2012
  • Article

Foreign Entry and the Mexican Banking System, 1997-2007

By: Stephen Haber and Aldo Musacchio
What is the impact of foreign bank entry on the pricing and availability of credit in developing economies? The Mexican banking system provides a quasi-experiment to address this question because in 1997 the Mexican government radically changed the laws governing the... View Details
Keywords: Banks and Banking; Ownership; Foreign Direct Investment; Laws and Statutes; Developing Countries and Economies; Banking Industry; Mexico
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Haber, Stephen, and Aldo Musacchio. "Foreign Entry and the Mexican Banking System, 1997-2007." Economía 13, no. 1 (Fall 2012): 13–37.
  • 2008
  • Working Paper

Financial Development, Bank Ownership, and Growth. Or, Does Quantity Imply Quality?

By: Shawn A. Cole
In 1980, India nationalized its large private banks. This induced different bank ownership patterns across different towns, allowing credible identification of the effects of bank ownership on financial development, lending rates, and the quality of intermediation, as... View Details
Keywords: Economic Growth; Credit; Banks and Banking; Interest Rates; State Ownership; Private Ownership; Banking Industry; India
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Cole, Shawn A. "Financial Development, Bank Ownership, and Growth. Or, Does Quantity Imply Quality?" Harvard Business School Working Paper, No. 09-002, July 2008.
  • 2013
  • Working Paper

Bank Failures and Output During the Great Depression

By: Jeffrey Miron and Natalia Rigol
In response to the Financial Crisis of 2008, macroeconomic policymakers employed a range of tools designed to prevent failures of large, complex financial institutions (“banks”). The Treasury and the Fed justified these actions by arguing that bank failures exacerbate... View Details
Keywords: History; Policy; Financial Crisis; Financial Institutions; Failure
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Miron, Jeffrey, and Natalia Rigol. "Bank Failures and Output During the Great Depression." NBER Working Paper Series, No. 19418, August 2013.
  • 13 Jun 2012
  • HBS Case

HBS Cases: A Startup Takes On the Credit Ratings Giants

For most of the 20th century, three bond ratings agencies—Moody's, Fitch, and Standard & Poor's—dominated the credit ratings industry, recently controlling 97 percent of the market. But the status quo was disrupted by the 2008 global... View Details
Keywords: by Maggie Starvish; Banking; Banking
  • 08 Jun 2020
  • Working Paper Summaries

Loan Types and the Bank Lending Channel

Keywords: by Victoria Ivashina, Luc Laeven, and Enrique Moral-Benito; Financial Services
  • 24 Jun 2008
  • Working Paper Summaries

Bank Structure and the Terms of Lending to Small Businesses

Keywords: by Rodrigo Canales & Ramana Nanda; Banking
  • 2017
  • Working Paper

The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets

By: Brian S. Chen, Samuel G. Hanson and Jeremy C. Stein
Small business lending by the four largest banks fell sharply relative to others in 2008 and remained depressed through 2014. We explore the dynamic adjustment process following this credit supply shock. In counties where the largest banks had a high market share, the... View Details
Keywords: Small Business; Financing and Loans; Banks and Banking; System Shocks; Credit; Labor; United States
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Chen, Brian S., Samuel G. Hanson, and Jeremy C. Stein. "The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets." NBER Working Paper Series, No. 23843, September 2017.
  • 23 Apr 2014
  • Working Paper Summaries

Corporate Financial Policies in Misvalued Credit Markets

Keywords: by Jarrad Harford, Marc Martos-Vila & Matthew Rhodes-Kropf; Banking; Banking
  • 2011
  • Working Paper

What Do Development Banks Do? Evidence from Brazil, 2002-2009

By: Sergio G. Lazzarini, Aldo Musacchio, Rodrigo Bandeira-de-Mello and Rosilene Marcon
While some authors view development banks as an important tool to alleviate capital constraints in scarce credit markets and unlock productive investments, others see those banks as conduits of cheap loans to politically connected firms that could obtain capital... View Details
Keywords: Cost of Capital; Credit; Equity; Banks and Banking; Financing and Loans; Investment; Government and Politics; Data and Data Sets; Resource Allocation; Markets; Performance; Banking Industry; Brazil
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Lazzarini, Sergio G., Aldo Musacchio, Rodrigo Bandeira-de-Mello, and Rosilene Marcon. "What Do Development Banks Do? Evidence from Brazil, 2002-2009." Harvard Business School Working Paper, No. 12-047, December 2011.
  • 14 Jun 2018
  • Cold Call Podcast

How Chase Sapphire Made Credit Cool for Millennials

Keywords: Banking; Banking
  • 12 Oct 2017
  • Working Paper Summaries

The Decline of Big-Bank Lending to Small Business: Dynamic Impacts on Local Credit and Labor Markets

Keywords: by Brian S. Chen, Samuel G. Hanson, and Jeremy C. Stein; Banking
  • 01 Feb 2013
  • Working Paper Summaries

Dollar Funding and the Lending Behavior of Global Banks

Keywords: by Victoria Ivashina, David S. Scharfstein & Jeremy C. Stein; Financial Services
  • Article

Credit Access and Social Welfare: The Rise of Consumer Lending in the United States and France

By: Gunnar Trumbull
Research into the causes of the 2008 financial crisis has drawn attention to a link between growing income inequality in the United States and high household indebtedness. Most accounts trace the U.S. idea of credit-as-welfare to the period of wage stagnation and... View Details
Keywords: Household Finance; Welfare State; Credit; Personal Finance; Welfare; Borrowing and Debt; France; United States
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Trumbull, Gunnar. "Credit Access and Social Welfare: The Rise of Consumer Lending in the United States and France." Politics & Society 40, no. 1 (March 2012): 9–34.
  • 22 Aug 2024
  • Research & Ideas

Reading the Financial Crisis Warning Signs: Credit Markets and the 'Red-Zone'

credit market dynamics—and investor behavior. HBS Working Knowledge spoke with Robin Greenwood, the George Gund Professor of Finance and Banking at Harvard Business School, about the role markets may play in... View Details
Keywords: by Rachel Layne; Banking
  • 24 Jan 2012
  • Working Paper Summaries

What Do Development Banks Do? Evidence from Brazil, 2002-2009

Keywords: by Sergio G. Lazzarini, Aldo Musacchio, Rodrigo Bandeira-de-Mello & Rosilene Marcon; Banking
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