Dr Ivan Lim ivan.lim@durham.ac.uk
Assistant Professor
Proximity to Bank Headquarters and Branch Efficiency: Evidence from Mortgage Lending
Lim, Ivan; Nguyen, Louis Duc Duy; Nguyen, Linh; Wilson, John O.S.
Authors
Professor Louis Nguyen duc.d.nguyen@durham.ac.uk
Professor
Linh Nguyen
John O.S. Wilson
Abstract
We use the staggered introduction of new flight routes to identify reductions in travel time between banks’ headquarters and branches to examine their effects on branch outputs and efficiency. Reductions in headquarters–branch travel time increases branch-level mortgage origination volume, and these loans exhibit higher ex post performance. Further analyses suggest these effects are due to branch employees working harder and more efficiently in seeking new customers and screening applications. Overall, our results imply that geographic proximity enables bank headquarters to monitor branches more effectively and mitigate distance-related agency costs.
Citation
Lim, I., Nguyen, L. D. D., Nguyen, L., & Wilson, J. O. (2024). Proximity to Bank Headquarters and Branch Efficiency: Evidence from Mortgage Lending. Journal of Money, Credit and Banking, https://doi.org/10.1111/jmcb.13142
Journal Article Type | Article |
---|---|
Acceptance Date | Apr 13, 2023 |
Online Publication Date | Mar 28, 2024 |
Publication Date | Mar 28, 2024 |
Deposit Date | Aug 15, 2023 |
Publicly Available Date | Apr 5, 2024 |
Journal | Journal of Money, Credit and Banking |
Print ISSN | 0022-2879 |
Electronic ISSN | 1538-4616 |
Publisher | Wiley |
Peer Reviewed | Peer Reviewed |
DOI | https://doi.org/10.1111/jmcb.13142 |
Public URL | https://durham-repository.worktribe.com/output/1717782 |
Files
Published Journal Article (Advance Online Version)
(476 Kb)
PDF
Publisher Licence URL
http://creativecommons.org/licenses/by/4.0/
You might also like
Does Marriage Equality Promote Credit Access? Evidence from Same-sex Marriage Laws
(2022)
Journal Article
Regulatory Spillovers in Local Mortgage Markets
(2022)
Journal Article
Climate Change Risk and the Cost of Mortgage Credit
(2022)
Journal Article
Lender Trust and Bank Loan Contracts
(2022)
Journal Article
Downloadable Citations
About Durham Research Online (DRO)
Administrator e-mail: dro.admin@durham.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search