عنوان

Utilization of soft information on bank performance :

9789811384721

981138472X

9789811384714

9811384711

Utilization of soft information on bank performance :

[Book]

the roles of relationship lending in competitive local markets /

Tadanori Yosano and Takayoshi Nakaoka.

Singapore :

Springer,

[2019]

©2019

1 online resource :

illustrations

SpringerBriefs in economics. Development Bank of Japan research series

Includes bibliographical references and index.

Intro; Preface; Acknowledgements; Contents; About the Authors; 1 Introduction; 1.1 The Bank-Firm Relationship in Japan; 1.2 Enhancing Functions of Relationship Lending in Japan Since the Early 2000s; 1.3 Soft and Hard Information; 1.4 Centralized and Decentralized Organizations; 1.5 Small, Medium-Sized, and Large Enterprises; 1.6 Lending Technologies for SMEs: Transactional and Relationship Lending; 1.7 Conclusions; 1.8 Outlook; References; 2 Theory and Hypotheses: The Effects of Using Soft Information on a Lender's Performance, Specifically in Interbank Competition

2.1 Informational Asymmetry and Lock-In2.2 Interbank Competition, the Shift to Relationship Lending, and Relationship Lending's Effect on Profitability; 2.3 The Informational Advantage of Relationship-Based Lending and Regional Banks' Credit Analysis Skills; 2.4 Interbank Competition's Effect on Loan Risk; 2.5 Interbank Competitions and the Effect of Relationship Lending on Bad Loan Ratios; 2.6 Conclusions; References; 3 Survey Data from Japanese Regional Banks and Using Soft Information in Lending Decisions; 3.1 Characteristics of Japanese Banks; 3.2 Survey Description and a Data Sample

3.3 Using Soft Information in Lending Decision Processes3.4 A Factor Analysis for Soft Information and Our Sample's Descriptive Data; 3.5 Univariate Tests: The Relationship Between Soft Information Factor Scores and a Bank's Performance; 3.6 Conclusions; Appendix 3.1: Survey Questionnaire Items (Conducted by SME Support, Japan); Appendix 3.2: The Underlying Factors in the Factor Analysis; References; 4 The Influence of Using Soft Information on Lender Performance in Competitive Local Markets: An Empirical Analysis; 4.1 Multivariate Regression Models; 4.2 Dependent and Explanatory Variables

4.2.1 Soft Information Factors4.2.2 Loan Performance; 4.2.3 Bank-Specific and Local Market-Specific Variables; 4.3 Regression Results; 4.3.1 Multivariate Analysis of Loan Profitability; 4.3.2 Multivariate Analysis of the Bad Loan Ratio; 4.4 Robustness Tests; 4.4.1 F-Test; 4.4.2 Assessment of the Factor Scores' Validity; 4.4.3 Random Effects GLS Regressions; 4.5 Conclusions; Appendix 4.1: Interbank Competition and Loan Performance; Appendix 4.2: Interbank Competition and the Non-performing Loan Ratio; References; 5 Soft Information's Role in Lending Decisions; 5.1 Introduction

5.2 Soft Information's Effects on Loan Profitability5.3 Soft Information's Role in Lending Decisions; 5.4 Three Latent Factors and Information Efficacy; 5.4.1 Business and Management Leadership; 5.4.2 Networks or Alliances/Partnerships; 5.4.3 Organizational Systems; 5.5 Concluding Remarks; References; Index

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This book explores the effects of soft information utilization in the decision process for lenders, especially concerning small and medium-sized enterprises (SMEs) in regional markets. This study is one of the first to use questionnaire survey data from lender representatives, and analyzes the relationship between the financial metrics of a lenders performance and soft information factors in inter-bank competition. The authors empirical results suggest that utilizing soft information allows banks to attain a more precise lending decision. The Financial Services Agency in Japan introduced an action program in 2003 that requires regional banks to shift from transaction banking to relationship lending. Against that background, this book examines the influence of relationship lending on a lenders performance. This study found that relationship lending allows lenders to charge a higher premium to counteract the high risk involved with SMEs. The book also examines how relationship lending affects lending performance in inter-bank competition. The conclusion is that, even though inter-bank competition has negative effects, a bank in a competitive local market can acquire an informational advantage to limit its own loss. This book categorizes three soft information factors: organizational systems, networks or alliances/partnerships, and business/management leadership based on survey data. The authors findings suggest that information production, especially network and business/leadership information, plays an essential role in promoting a banks profitability. These effects are strong even when banks face high inter-bank competition. Relationship lending not only improves bankers lending techniques, but also fosters and enhances their community knowledge and enables them to survive in a highly competitive market.

Springer Nature

com.springer.onix.9789811384721

Utilization of soft information on bank performance.

9789811384714

Banks and banking-- Japan.

Commercial loans-- Japan.

Small business-- Japan-- Finance.

Banks and banking.

Commercial loans.

Small business-- Finance.

Japan.

7

Yosano, Tadanori

Nakaoka, Takayoshi

20200823231242.0

pn

[Book]

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