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dc.contributor.authorMüller, Carola
dc.contributor.authorJuelsrud, Ragnar
dc.contributor.authorAndersen, Henrik
dc.description.abstractWe use unique data on banks' private risk assessments of corporate borrowers to quantify how competition among banks affect the risk sensitivity of interest rates in the Norwegian credit market. We show that an increase in competition makes corporate lending rates less sensitive to banks' own assessment of borrower risk and this is more pronounced in market segments with higher degree of asymmetric information. Our results are driven by banks with low franchise values, outlining a novel channel of how the competition-fragility nexus can operate.en_US
dc.publisherNorges Banken_US
dc.relation.ispartofseriesWorking paper;19/2021
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 Internasjonal*
dc.subjectbanking competitionen_US
dc.subjectmarket poweren_US
dc.subjectrisk pricingen_US
dc.subjectfinancial stabilityen_US
dc.subjectJEL: G11en_US
dc.subjectJEL: G21en_US
dc.subjectJEL: G28en_US
dc.titleRisk-based pricing in competitive lending marketsen_US
dc.typeWorking paperen_US
dc.subject.nsiVDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212en_US

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Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal
Except where otherwise noted, this item's license is described as Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal