International syndicated loans and regional banksMasaki Yamaguchi
This paper investigates regional bank participation in international syndicated loans, which attract significant attention from the banking industry. This topic has a remarkable importance for regional banks because overseas activities are related to their growth strategies. We pose two questions to illustrate the internationalization of regional banks. The first question explores differences in loan transactions between the first internationalization during 1992-1997 and the second internationalization during 2009-2014. The second question seeks to identify the types of loan transactions preferred by regional banks. We answer these questions by using a comparative analysis and Probit analysis of 23,387 transaction data. Activities of regional banks in the first period overwhelm that of the second period. The first internationalization was characterized by a broad base of participant banks. Estimation results demonstrated similarities in the lending behavior of regional banks between the two periods. Smaller loan amounts, larger syndicates, and loan purposes for ordinary business facilitate regional bank participation in syndicated loans. These preferences reflect limited risk-taking capability and a weaker screening technique by regional banks. We also observe differences in currency denomination, and the Japanese yen increases its presence in the second period.
International syndicated loans and regional banksMasaki Yamaguchi
This paper investigates regional bank participation in international syndicated loans, which attract significant attention from the banking industry. This topic has a remarkable importance for regional banks because overseas activities are related to their growth strategies. We pose two questions to illustrate the internationalization of regional banks. The first question explores differences in loan transactions between the first internationalization during 1992-1997 and the second internationalization during 2009-2014. The second question seeks to identify the types of loan transactions preferred by regional banks. We answer these questions by using a comparative analysis and Probit analysis of 23,387 transaction data. Activities of regional banks in the first period overwhelm that of the second period. The first internationalization was characterized by a broad base of participant banks. Estimation results demonstrated similarities in the lending behavior of regional banks between the two periods. Smaller loan amounts, larger syndicates, and loan purposes for ordinary business facilitate regional bank participation in syndicated loans. These preferences reflect limited risk-taking capability and a weaker screening technique by regional banks. We also observe differences in currency denomination, and the Japanese yen increases its presence in the second period.
Chinese banks equity research initiation by Timothy Mak June 2017 prefers China Construction Bank & the Agricultural Bank of China for their retail franchise and demand deposit pool
ASSESSING THE CONDITION OF FINANCIAL DISTRESS W ITH ANALYSIS OF LIQUIDITY, SO...AJHSSR Journal
ABSTRACT : Financial distress is the stage of declining financial conditions that occurred before bankruptcy.
To determine the risk of bankruptcy by knowing the signs of financial distress. Financial distress can analyze
financial statements using financial ratios, namely liquidity, solvency and profitability. The purpose of this study
was to examine the effect of liquidity, solvency and profitability on financial distress conditions. The population
in this study were 30 consumer goods industrial companies. By using purposive sampling technique, 21
companies were obtained. Using 3 (three) years, 63 observations were obtained. Data analysis technique is
logistic regression analysis with SPSS V.23 program. The results of this study indicate that liquidity and
profitability have a negative and significant effect on financial distress conditions so that the hypothesis is
accepted, but solvency has a positive and significant effect on financial distress conditions, this means rejecting
the hypothesis.
Financial services sector - implications of FOFA, possible acquires of SFW, S...George Gabriel
SFG Australia was an ASX listed financial stock. In this note, we analysed (i) the Future of Financial Advice (FOFA) laws; (ii) sum of the parts (SOTP) valuation of SFW; and (iii) possible acquirers of the business
Altman Bankruptcy Prediction Model and Corporate Governance An Empirical Stud...ijtsrd
The implications of the Altman bankruptcy prediction model on deposit money banks corporate governance in Nigeria are the subject of this research. The majority of these studies were undertaken in both Nigeria and other nations, and just a few of the Nigerian studies conducted their research in corporate firms other than the banking sector, and only a few of these banking sector studies ended in 2013. Furthermore, there is a scarcity of research on bankruptcy and corporate governance in Nigeria. Meanwhile, considering the dynamic nature of Nigerian deposit money banks, all previous research relate to a specific time span. As a result, the impact of the Altman bankruptcy prediction model on the corporate governance of Nigerian deposit money institutions was investigated in this study. The study aims to determine the impact of the Altman bankruptcy forecasting model on board independence in Nigerian deposit money banks, as well as if the model has an impact on board size in Nigerian deposit money banks. It was decided to use an ex post facto study design. From a population of 22 banks in Nigeria, a sample size of 9 deposit money banks was chosen. Data was gathered from the sampled banks annual reports and accounts for the years 2009 to 2019. With the help of E View 9.0, the study used regression analysis to examine the hypotheses. The Altman bankruptcy forecasting model has a beneficial influence on board independence however this effect is not significantly significant on deposit money institutions in Nigeria, according to the data reviewed. It was also discovered that while the Altman bankruptcy predicting model has a positive effect on board size, this effect is not statistically significant in Nigerian deposit money banks. Ezejiofor, Raymond A | Okerekeoti, Chinedu U "Altman Bankruptcy Prediction Model and Corporate Governance: An Empirical Study of Nigerian Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd46387.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/46387/altman-bankruptcy-prediction-model-and-corporate-governance-an-empirical-study-of-nigerian-banks/ezejiofor-raymond-a
Bank Lending Procyclicality of Islamic and Conventional Banks in IndonesiaISEFID
Presented by
Muhammad Rizky Prima Sakti * & Tami Astie Ulhiza
Researcher at ISEFID (Islamic Economics Forum for Indonesian Development)
Research assistant at IRTI - IDB (Islamic Research & Training Institute – Islamic Development Bank
Chinese banks equity research initiation by Timothy Mak June 2017 prefers China Construction Bank & the Agricultural Bank of China for their retail franchise and demand deposit pool
ASSESSING THE CONDITION OF FINANCIAL DISTRESS W ITH ANALYSIS OF LIQUIDITY, SO...AJHSSR Journal
ABSTRACT : Financial distress is the stage of declining financial conditions that occurred before bankruptcy.
To determine the risk of bankruptcy by knowing the signs of financial distress. Financial distress can analyze
financial statements using financial ratios, namely liquidity, solvency and profitability. The purpose of this study
was to examine the effect of liquidity, solvency and profitability on financial distress conditions. The population
in this study were 30 consumer goods industrial companies. By using purposive sampling technique, 21
companies were obtained. Using 3 (three) years, 63 observations were obtained. Data analysis technique is
logistic regression analysis with SPSS V.23 program. The results of this study indicate that liquidity and
profitability have a negative and significant effect on financial distress conditions so that the hypothesis is
accepted, but solvency has a positive and significant effect on financial distress conditions, this means rejecting
the hypothesis.
Financial services sector - implications of FOFA, possible acquires of SFW, S...George Gabriel
SFG Australia was an ASX listed financial stock. In this note, we analysed (i) the Future of Financial Advice (FOFA) laws; (ii) sum of the parts (SOTP) valuation of SFW; and (iii) possible acquirers of the business
Altman Bankruptcy Prediction Model and Corporate Governance An Empirical Stud...ijtsrd
The implications of the Altman bankruptcy prediction model on deposit money banks corporate governance in Nigeria are the subject of this research. The majority of these studies were undertaken in both Nigeria and other nations, and just a few of the Nigerian studies conducted their research in corporate firms other than the banking sector, and only a few of these banking sector studies ended in 2013. Furthermore, there is a scarcity of research on bankruptcy and corporate governance in Nigeria. Meanwhile, considering the dynamic nature of Nigerian deposit money banks, all previous research relate to a specific time span. As a result, the impact of the Altman bankruptcy prediction model on the corporate governance of Nigerian deposit money institutions was investigated in this study. The study aims to determine the impact of the Altman bankruptcy forecasting model on board independence in Nigerian deposit money banks, as well as if the model has an impact on board size in Nigerian deposit money banks. It was decided to use an ex post facto study design. From a population of 22 banks in Nigeria, a sample size of 9 deposit money banks was chosen. Data was gathered from the sampled banks annual reports and accounts for the years 2009 to 2019. With the help of E View 9.0, the study used regression analysis to examine the hypotheses. The Altman bankruptcy forecasting model has a beneficial influence on board independence however this effect is not significantly significant on deposit money institutions in Nigeria, according to the data reviewed. It was also discovered that while the Altman bankruptcy predicting model has a positive effect on board size, this effect is not statistically significant in Nigerian deposit money banks. Ezejiofor, Raymond A | Okerekeoti, Chinedu U "Altman Bankruptcy Prediction Model and Corporate Governance: An Empirical Study of Nigerian Banks" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-6 , October 2021, URL: https://www.ijtsrd.com/papers/ijtsrd46387.pdf Paper URL : https://www.ijtsrd.com/management/accounting-and-finance/46387/altman-bankruptcy-prediction-model-and-corporate-governance-an-empirical-study-of-nigerian-banks/ezejiofor-raymond-a
Bank Lending Procyclicality of Islamic and Conventional Banks in IndonesiaISEFID
Presented by
Muhammad Rizky Prima Sakti * & Tami Astie Ulhiza
Researcher at ISEFID (Islamic Economics Forum for Indonesian Development)
Research assistant at IRTI - IDB (Islamic Research & Training Institute – Islamic Development Bank
Competition and financial sector regulation in Malawi: to whom it may concern...IFPRIMaSSP
The study is premised on the central hypothesis that high market concentration in the banking sector can facilitate collusive pricing outcomes which can adversely impact the low-income and important but low-return segments of the economy and activities. The empirical results reported here are based on the period from January 2005 to March 2014 i.e. long after financial sector liberalization and after much new bank entry. From a policy and regulatory perspective there is no support for the expectation that market de-concentration would moderate margins as a result of competitive pricing on both the lending and deposit sides. The two-bank dominance in the sector and non-requirement for posting maximum lending rates have facilitated collusion on lending rates through price-leadership while smaller banks seeking market footholds have been leading the competition on deposits rates. In this context an environment of already high bank rates has moderated margins from the deposit side, which is good for the low-income. Other results also suggest non-price “monopolistic” competitiveness service provision and extension which would also be beneficial to consumers. But even the trend on lending rates is breaking away from leadership-followership as banks are compelled towards the Basel II standards and their tougher risk management and transparency requirements. Although margins do not appear to respond to inflationary tendencies, the actual spreads do so positively, inflicting a double blow on consumers through higher lending rates and/ suppressed deposit rates. From the banks’ side the major hurdles are seen as lack of a long-term securities market to provide bench marking especially for deposit rates and that the push towards the Basel II is itself unnecessary at this stage as it raises both costs and liquidity risk.
The CECL Workshop Series Part II: Vintage AnalysisLibby Bierman
This webinar covered concerns with methodologies as institutions prepare for the FASB's proposed current expected credit loss (CECL) model. This presentation covered the importance of scenario building, choosing methodologies to test, and gave a deep dive into vintage analysis CECL scenarios.
Mercer Capital's Bank Watch | June 2022 | Bond Pain and Perspective on Bank V...Mercer Capital
Brought to you by the Financial Institutions Team of Mercer Capital, this monthly newsletter is focused on bank activity in five U.S. regions. Bank Watch highlights various banking metrics, including public market indicators, M&A market indicators, and key indices of the top financial institutions, providing insight into financial institution valuation issues.
This is one of the two stock I am responsible for during the time I took FI457 class at MSU. I did a 5-year cash flow prediction base on the company 10-K and other information. This shows my suggestions base on the financial analysis.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
1. Soomi Lee
University of La Verne
Western Economic Association International Virtual Meeting
March 17, 2021
Regional Banking Market Structure and Emergency Loans to
Small Businesses: Examining the Paycheck Protection
Program during the Covid-19 Pandemic
2. Goal
• Examine the effect of regional banking market structure on
emergency lending to small businesses during an economic crisis.
• Analyze county-level data for the Paycheck Protection Program
(PPP), designed to ease the negative economic impact driven by
Covid-19 in 2020.
Lee | WEAI 2021 1
3. Motivation
• Regional economic resilience and the role of financial intermediaries
(Martin and Sunley 2020)
• Q: what are the characteristics (initial conditions) of regional
financial markets that promote economic resilience?
• Disruption: shocks to regional economies
• Global, endogenous shocks: financial crisis
• Local, exogenous shocks: natural disasters
• Global, exogenous shock: Covid-19 pandemic
Lee | WEAI 2021 2
4. 1. Market concentration in the banking sector
• Decline in # commercial banks: 68% decline between 1986 and
2019 (FDIC)
• Asset concentration: 12 largest banks hold 60 percent of all
domestic assets in 2020 (The Fed 2020)
• Asset size of all non-community banks was 82 times larger than that
of all community banks in 2019 (FDIC 2020)
Lee | WEAI 2021 3
5. 1. Market concentration in the banking sector (cont’d)
1. Traditional view
Market concentration ⇡, small businesses lending ⇣
(Berger et al. 2004; Cetorelli and Strahan 2004)
2. “Investment theory”
Market concentration ⇡, small businesses lending ⇡
(Francis, Hasan, and Wang 2008)
3. Recent development
Nonlinear relationship; Considers types and sizes of banks and
borrowers (Strahan 2008)
Lee | WEAI 2021 4
6. 2. Community banks and relationship lending
• Community banks – Definition
• Small banks, local banks
• FDIC definition: asset size, geographic footprint, specialty,
foreign assets, etc.
• Acquire deposits locally and make loans to local businesses, playing
a vital role in local economies (Rogers 2012).
• Community banks ⇡, small business lending ⇡.
• Mechanism: relationship lending using ”soft information”
• C.f., transaction lending using “hard information”
• In favor of young firms
Lee | WEAI 2021 5
7. 3. Market concentration and relationship lending
• Dynamics of competition is determined by types of banks in the
market (Presbutero and Zazzaro 2011; Elsas 2005; Canales and
Nanda 2012)
• Effects of Bank M&As on SME lending depends on players (Peek
and Rosengren 1998; Strahan and Weston 1998; and Avery and
Samolyk 2004)
Lee | WEAI 2021 6
8. 4. SME lending during economic crises
• Theory (Bolton et al. 2013): relationship borrowers pay higher
interest rates during normal times in anticipation of prolonged
relationships with banks during crises.
• Relationship borrowers are better at mitigating credit restrictions
during a recession (Sette and Gobbi 2014)
• PPP study (Amiram and Rabetti 2020): relationship borrowers get a
larger loan with a faster approval.
Lee | WEAI 2021 7
9. Paycheck Protection Program
• Approved by Congress and implemented by the Small Business
Administration on March 27, 2020
• For SMEs with less than 500 employees & other small organizations
• Help small businesses with payroll, rent, etc.
• Fixed interest rate at 1%
• No collateral
• Potentially forgiven
Lee | WEAI 2021 8
10. Data & Empirical Model
• Cross-sectional data with 1,300 U.S. Counties.
• Using Quantile Regression
• Instead of OLS, I use the Least Absolute Deviation model (baseline, q=0.5).
• Simply put, estimate the median conditional function instead of the mean
conditional function.
Lee | WEAI 2021 9
!! = #! + %"#(''(!) + %$#(*+,-./0!) + %%#(''(!)(*+,-./0!) + 1!
&
2# + ∑ 4'
("
')" + 5!,
𝑦! = number of PPP loans per 100 businesses in county i
HHI = market concentration index
Cbratio = community bank branch ratio
𝑎! = intercept, 𝑥! =control variables, ∑ 𝑆=state fixed effects, 𝑒!=error term
Marginal effect of HHI = 𝛽"+ 𝛽# 𝐶𝐵𝑟𝑎𝑡𝑖𝑜
Marginal effect of CBratio = 𝛽$ + 𝛽#(𝐻𝐻𝐼)
11. Variables
• Dependent variable: PPP loans per 100 businesses
• Key explanatory variables (log)
• Market concentration (HHI)
• Community bank (CBratio)
• # full-service bank branches per 1000 businesses
• Control variables (log)
• Per capita income
• Population
• Covid-19 confirmed cases
• % jobs in hospitality, goods-producing industries, and trade (separately)
• Metropolitan indicator
• State fixed effects
Lee | WEAI 2021 10
13. Interaction: Concentration & Community Banks
Lee | WEAI 2021 12
18
19
20
21
22
23
Linear
Prediction
Number
of
PPP
Loans
per
100
Business
1.8 2 2.2 2.4 2.6 2.8 3 3.2 3.4 3.6 3.8 4 4.2 4.4 4.6
Market Concentration of Banking Sector, HHI (log)
q=0.25 q=0.5 q=0.75
Community Bank Branch Ratio to All Branches
14. Average Marginal Effects of Market Concentration
Lee | WEAI 2021 13
0.55
-3
-2
-1
0
1
Effects
of
Banking
Market
Concentration
Linear
Prediction
of
PPP
Loans
0 .2 .4 .6
Community Bank Branch Ratio (log)
15. Average Marginal Effects of Community Bank
Lee | WEAI 2021 14
2.15 3.6
-10
-5
0
5
Effects
of
Community
Bank
Brach
Ratio
2 2.5 3 3.5 4 4.5
Banking Market Concentration (HHI, log)
16. • Market concentration reduces PPP loans, but the effect is
mitigated by a greater presence of community banks.
• Community banks significantly increase PPP loans in a highly
concentrated market.
• Multi-dimensional features of regional banking market
interplay in determining emergency loans to small businesses.
• Contributes to the literature on regional economic resilience
• Interpretations are limited to correlations.
Lee | WEAI 2021 15
Conclusion