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An Investigation Of Bank Lending Practices To Test Portfolio Theory And Theories Of Credit Rationing And Customer Relationships, Christine Chmura
An Investigation Of Bank Lending Practices To Test Portfolio Theory And Theories Of Credit Rationing And Customer Relationships, Christine Chmura
Theses and Dissertations
The purpose of this study is to consider the theoretical basis of commercial loan pricing. Is commercial loan pricing most representative of pricing to reflect risk in the Markowitz sense or do banks ration their loanable funds based on credit risk or expected long-term customer value? Alternatively, does each theory contribute to the explanation of loan pricing?
Some of the pricing theories noted in this study have been tested at the aggregate banking level, however, few studies have been performed at the loan level. Moreover, the author is not aware of any study that tests which theory noted here best …