The Impact of the Digital Economy on Bank Loan Pricing: A Review of Recent Literature

The Impact of the Digital Economy on Bank Loan Pricing: A Review of Recent Literature

While this list doesn't directly address the 'digital economy', it analyzes core banking functions impacted by digital transformation. Further research connecting these themes to loan pricing specifically is recommended.

1. Credit Market Competition and Capital Regulation

• Author(s): Allen, Franklin; Carletti, Elena; Marquez, Robert* Journal: Review of Financial Studies* Year: 2008* Volume: 21* Issue: 4* Pages: 1403-1432* DOI: 10.1093/rfs/hhn015

Abstract: This paper examines how capital regulation affects competition and the pricing of loans. The authors find that increased capital requirements can lead to both higher and lower loan rates depending on the competitive landscape of the banking sector.

2. Bank Liquidity Creation, Monetary Policy, and Financial Crises

• Author(s): Berger, Allen N.; Bouwman, Christa H. S.* Journal: Journal of Financial Stability* Year: 2013* Volume: 9* Issue: 3* Pages: 287-305* DOI: 10.1016/j.jfs.2012.12.002

Abstract: This study investigates the role of banks in providing liquidity and how this interacts with monetary policy, particularly during financial crises. The findings suggest that banks' liquidity creation capacity is crucial for mitigating the negative impacts of economic shocks.

3. Capital Regulation, Liquidity Requirements, and Taxation in a Dynamic Model of Banking

• Author(s): De Nicol￲, Gianni; Gamba, Andrea; Lucchetta, Marcella* Journal: Journal of Economic Dynamics and Control* Year: 2012* Volume: 36* Issue: 8* Pages: 1245-1261* DOI: 10.1016/j.jedc.2012.03.017

Abstract: This paper develops a dynamic model to analyze the combined effects of capital regulation, liquidity requirements, and taxation on banks' behavior. The authors demonstrate that these factors significantly influence banks' lending decisions and risk-taking.

4. Why Bank Capital Matters for Monetary Policy

• Author(s): Gambacorta, Leonardo; Shin, Hyun Song* Journal: Journal of Financial Intermediation* Year: 2018* Volume: 35* Part: A* Pages: 17-29* DOI: 10.1016/j.jfi.2017.12.001

Abstract: This research explores the link between bank capital and the effectiveness of monetary policy. The authors argue that well-capitalized banks are more responsive to monetary policy changes, leading to a stronger transmission mechanism.

5. What do we know about capital structure? Some evidence from international data

• Author(s): Rajan, Raghuram G.; Zingales, Luigi* Journal: Journal of Finance* Year: 1995* Volume: 50* Issue: 5* Pages: 1421-1460* DOI: 10.1111/j.1540-6261.1995.tb05184.x

Abstract: This seminal paper investigates the determinants of capital structure using international data. While predating the digital era's peak, it establishes foundational concepts about how firms, including banks, manage debt vs. equity, influencing their cost of funds and thus, loan pricing.