Bank Loans Non-Linear Structure of Pricing: Empirical Evidence From Sovereign Debts
- Topics:
- Commercial Lending
- Tags:
- Bank,
- Banking,
- Center For Financial Studies,
- Financial Services,
- Marketing,
- Pricing,
- Pricing Strategy
- Source:
- Center for Financial Studies
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Overview: The paper suggests an innovative contribution to the investigation of banking liabilities pricing contracted by sovereign agents. To address fundamental issues of banking, the study focuses on the determinants of the up-front fees (the up-front fee is a charge paid out at the signature of the loan arrangement). The investigation is based on a uniquely extensive sample of bank loans contracted or guaranteed by 58 less-developed countries sovereigns. The main findings suggest a significant impact of the renegotiation and agency costs on front-end borrowing payments.
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Format: PDF | Size: 409KB | Date: Oct 2003 | Pages: 45



