P2P lending network is person to person lending network, lnternet-based applications, individuals lending financial model to others through the network intermediary,＇ platform. Currently P2P lending network has devel...P2P lending network is person to person lending network, lnternet-based applications, individuals lending financial model to others through the network intermediary,＇ platform. Currently P2P lending network has developed rapidly, but the P2P network lending platform also are lacing increasing risks, the biggest risk is credit risk. This article from the credit rating perspective, comparative analysis of the existing credit rating methodology, Analysis to establish a relatively sound credit rating mechanisms, thus reducing credit risk.展开更多
There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks.One concern is that big banks might be using their market power to charge higher lending rates ...There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks.One concern is that big banks might be using their market power to charge higher lending rates as they become larger,more efficient,and unchallenged.In contrast,several studies found that when bank size increases beyond certain thresholds,diseconomies of scale are introduced that lead to inefficiency.In that case,we also would expect to see widened interest margins.This study examines the connection between bank size and efficiency to understand whether that relationship is influenced by exploitation of market power or economies of scale.Using a panel of 162 African banks for 2001–2011,we analyzed the empirical data using instrumental variables and fixed effects regressions,with overlapping and non-overlapping thresholds for bank size.We found two key results.First,bank size increases bank interest rate margins with an inverted U-shaped nexus.Second,market power and economies of scale do not increase or decrease the interest rate margins significantly.The main policy implication is that interest rate margins cannot be elucidated by either market power or economies of scale.Other implications are discussed.展开更多
文摘P2P lending network is person to person lending network, lnternet-based applications, individuals lending financial model to others through the network intermediary,＇ platform. Currently P2P lending network has developed rapidly, but the P2P network lending platform also are lacing increasing risks, the biggest risk is credit risk. This article from the credit rating perspective, comparative analysis of the existing credit rating methodology, Analysis to establish a relatively sound credit rating mechanisms, thus reducing credit risk.
文摘There is a growing body of evidence that interest rate spreads in Africa are higher for big banks compared to small banks.One concern is that big banks might be using their market power to charge higher lending rates as they become larger,more efficient,and unchallenged.In contrast,several studies found that when bank size increases beyond certain thresholds,diseconomies of scale are introduced that lead to inefficiency.In that case,we also would expect to see widened interest margins.This study examines the connection between bank size and efficiency to understand whether that relationship is influenced by exploitation of market power or economies of scale.Using a panel of 162 African banks for 2001–2011,we analyzed the empirical data using instrumental variables and fixed effects regressions,with overlapping and non-overlapping thresholds for bank size.We found two key results.First,bank size increases bank interest rate margins with an inverted U-shaped nexus.Second,market power and economies of scale do not increase or decrease the interest rate margins significantly.The main policy implication is that interest rate margins cannot be elucidated by either market power or economies of scale.Other implications are discussed.
