The effects of underwriting practices on loan losses: Evidence from the FDIC survey of bank lending practices
作者： John O’Keefe
DOI: 10.1108/S1569-3767(2010)0000011013
关键词: Financial system 、 Underwriting 、 Finance 、 Business 、 Participation loan 、 Term loan 、 Soft loan 、 Non-performing loan 、 Cross-collateralization 、 Loan 、 Non-conforming loan
摘要: Purpose – This chapter investigates the influence of bank loan underwriting practices on losses and identifies potential determinants lending for five categories loans: business, consumer, commercial real estate, home equity, construction land development loans. Methodology/approach Using data riskiness obtained from U.S. Federal Deposit Insurance Corporation (FDIC) examiner surveys January 1996 to March 2009, I fit a two-step treatment effects model measure losses, controlling endogeneity practices. Findings In selection step, find that business loans, likelihood management will adopt low-risk increases with financial performance quality hierarchical complexity decreases market competition. Results consumer loans three estate are similar those found but show weaker statistical relationships all explanatory variables. loss determination lower (higher) risk generally associated gross charge-offs (as percentage leases) loans. Originality/value is first study being characterized in terms their bank. addition, this consider practices.
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