IDEAS home Printed from https://ideas.repec.org/a/oup/rfinst/v35y2022i11p4948-4984..html
   My bibliography  Save this article

Small Bank Lending in the Era of Fintech and Shadow Banks: A Sideshow?

Author

Listed:
  • Taylor A Begley
  • Kandarp Srinivasan

Abstract

Amid the emerging dominance of nonbanks, small banks use key financing advantages to persist in the mortgage market. We provide evidence of the heterogeneous impact of two shocks to the supply of mortgage credit: postcrisis regulatory burden and GSE financing cost changes. Small banks exploit regulation disproportionately affecting the largest four banks (Big4) and their ability to lend on balance sheet to strongly substitute for the retreating Big4. The erasure of guarantee fee (g-fee) discounts for large lenders facilitates small bank growth in GSE lending. Small banks also grow balance sheet loans in areas more exposed to g-fee hikes.

Suggested Citation

  • Taylor A Begley & Kandarp Srinivasan, 2022. "Small Bank Lending in the Era of Fintech and Shadow Banks: A Sideshow?," The Review of Financial Studies, Society for Financial Studies, vol. 35(11), pages 4948-4984.
    • Handle: RePEc:oup:rfinst:v:35:y:2022:i:11:p:4948-4984.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/rfs/hhac038
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tan, Zhuohong & Wang, Handi & Hong, Yunzhe, 2023. "Does bank FinTech improve corporate innovation?," Finance Research Letters, Elsevier, vol. 55(PA).
    2. Li, Linwen & Gao, Wei & Gu, Wanhong, 2023. "Fintech, bank concentration and commercial bank profitability: Evidence from Chinese urban commercial banks," Finance Research Letters, Elsevier, vol. 57(C).

    More about this item

    JEL classification:

    • G2 - Financial Economics - - Financial Institutions and Services
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:rfinst:v:35:y:2022:i:11:p:4948-4984.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/sfsssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.