Geographic disparities in bank lending: Evidence from an auto loan market

IF 4.8 2区经济学 Q1 BUSINESS, FINANCE

Pacific-Basin Finance Journal Pub Date : 2024-11-04 DOI:10.1016/j.pacfin.2024.102573

Tao Liu , Yanxin Yu , Di Gong , Min Guo

引用次数: 0

Abstract

We investigate geographic biases against nonlocal borrowers in the Chinese auto loan market. Using proprietary loan-level data from a major commercial bank in a regional market, we discover that nonlocal borrowers encounter geographic discrimination, manifested in higher loan rates and shorter loan durations compared to similar local counterparts, even after adjusting for borrowers' risk profiles. This bias is exacerbated by information asymmetries as well as economic and institutional stereotypes. The disparity is particularly pronounced in cases involving elevated loan-to-value (LTV) ratios, higher-value or luxury vehicles, and among male or older borrowers. Our findings shed light on the human biases in lending decisions in the credit market.

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银行贷款的地域差异：来自汽车贷款市场的证据

我们调查了中国汽车贷款市场中对非本地借款人的地域偏见。通过使用一家主要商业银行在区域市场的专有贷款数据，我们发现非本地借款人遭遇了地域歧视，表现为与本地类似借款人相比，贷款利率更高，贷款期限更短，即使在对借款人的风险状况进行调整后也是如此。信息不对称以及经济和制度成见加剧了这种偏见。在涉及贷款价值比（LTV）较高、价值较高或豪华车辆的情况下，以及在男性或年龄较大的借款人中，这种差异尤为明显。我们的研究结果揭示了信贷市场贷款决策中的人为偏差。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Pacific-Basin Finance Journal BUSINESS, FINANCE-

CiteScore

6.80

自引率

6.50%

发文量

157

期刊介绍： The Pacific-Basin Finance Journal is aimed at providing a specialized forum for the publication of academic research on capital markets of the Asia-Pacific countries. Primary emphasis will be placed on the highest quality empirical and theoretical research in the following areas: • Market Micro-structure; • Investment and Portfolio Management; • Theories of Market Equilibrium; • Valuation of Financial and Real Assets; • Behavior of Asset Prices in Financial Sectors; • Normative Theory of Financial Management; • Capital Markets of Development; • Market Mechanisms.