Transactions accounts and loan monitoring

• 成果类型: Article
• 署名作者: Mester, Loretta J.; Nakamura, Leonard I.; Renault, Micheline
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; University of Pennsylvania; University of Quebec; University of Quebec Montreal
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhl018
• 发表日期: 2007
• 页码: 529
• 关键词: banks; finance

摘要

We show that transactions accounts, by providing ongoing data on borrowers' activities, help financial intermediaries monitor borrowers. This information is most readily available to commercial banks, which offer these accounts and lending together. We find that (1) monthly changes in accounts receivable are reflected in transactions accounts; (2) borrowings in excess of collateral predict credit downgrades and loan write-downs; and (3) the lender intensifies monitoring in response. This is evidence on a key issue in financial intermediation-there is an advantage to providing deposit-taking and lending jointly. But this advantage may have fallen as the cost of communication has declined.