Journal ArticleDOI
Fintech, regulatory arbitrage, and the rise of shadow banks
TLDR
In this article, the authors study how two forces, regulatory differences and technological advantages, contributed to the growth of shadow banks in residential mortgage origination, concluding that traditional banks contracted in markets where they faced more regulatory constraints; shadow banks partially filled these gaps.About:
This article is published in Journal of Financial Economics.The article was published on 2018-12-01. It has received 584 citations till now. The article focuses on the topics: Shadow (psychology) & Market share.read more
Citations
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Journal ArticleDOI
Information: Hard and Soft
TL;DR: Benmelech et al. as mentioned in this paper survey the literature to understand how information type influences the continued evolution of financial markets and institutions and present the relative advantages of hard and soft information.
Journal ArticleDOI
Fintech and banking: What do we know?
TL;DR: In this article, a review of the literature on fintech and its interaction with banking is presented, including innovations in payment systems, credit markets, and insurance, with Blockchain-assisted smart contracts playing a role.
Journal ArticleDOI
Peer-to-Peer Lenders Versus Banks: Substitutes or Complements?
TL;DR: In this article, the authors study whether peer-to-peer (P2P) lending platforms serve as substitutes for banks or instead as complements in the consumer credit market and derive testable predictions to distinguish between these two possibilities.
Journal ArticleDOI
FinTech and RegTech : impact on regulators and banks
TL;DR: In this paper, the potential of welfare outcomes for consumers, regulatory and supervisory gains and reputational gains for the financial services industry has been analyzed in the context of FinTech and strategic partnerships.
Journal ArticleDOI
Predictably Unequal? The Effects of Machine Learning on Credit Markets
Andreas Fuster,Andreas Fuster,Andreas Fuster,Paul Goldsmith-Pinkham,Tarun Ramadorai,Tarun Ramadorai,Ansgar Walther,Ansgar Walther +7 more
TL;DR: In this paper, a simple equilibrium model of credit provision in which to evaluate the impacts of statistical technology on the fairness of outcomes across categories such as race and gender was proposed. But the model was not applied to US mortgages.
References
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Journal ArticleDOI
Estimating Discrete-Choice Models of Product Differentiation
TL;DR: In this paper, the authors consider the problem of "supply-and-demand" analysis on a cross-section of oligopoly markets with differentiated products and propose estimation by "inverting" the market-share equation to find the implied mean levels of utility for each good.
Journal ArticleDOI
Originate-to-Distribute Model and the Subprime Mortgage Crisis
TL;DR: This paper showed that banks with high involvement in the originate-to-distribute (OTD) market during the pre-crisis period originated excessively poor quality mortgages and that lack of screening incentives coupled with leverage induced risk-taking behavior significantly contributed to the current subprime mortgage crisis.
Journal ArticleDOI
The Growth of Finance
TL;DR: In this article, a preliminary assessment of whether the growth of active asset management, household credit, and shadow banking has been socially beneficial has been provided by the US financial services industry.
Journal ArticleDOI
The Failure of Models that Predict Failure: Distance, Incentives and Defaults
Uday Rajan,Amit Seru,Vikrant Vig +2 more
TL;DR: In this article, the authors used data on securitized subprime mortgages issued in the period 1997-2006 to show that a statistical default model estimated in a low securitization period breaks down in a high securitus period in a systematic manner: it underpredicts defaults among borrowers for whom soft information is more valuable.
Journal ArticleDOI
Inconsistent Regulators: Evidence from Banking*
TL;DR: In this article, the authors study supervisory decisions of U.S. banking regulators and exploit a legally determined rotation policy that assigns federal and state supervisors to the same bank at exogenously set time intervals.
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