• November 2017
• Article

Credit-Induced Boom and Bust

By: Marco Di Maggio and Amir Kermani

Can a credit expansion induce a boom and bust in house prices and real economic activity? This paper exploits the federal preemption of national banks in 2004 from local laws against predatory lending to gauge the effect of the supply of credit on the real economy....  View Details

Keywords: Great Recession; Subprime; Credit Supply; Credit Expansion; Household Leverage; Household Debt; Preemption Rule; Mortgages; Laws and Statutes; Credit; Household; Borrowing and Debt; Economic Slowdown and Stagnation

Citation

SSRN

Find at Harvard

Related

Di Maggio, Marco, and Amir Kermani. "Credit-Induced Boom and Bust." Review of Financial Studies 30, no. 11 (November 2017): 3711–3758. (Lead article and Editor's choice Winner of the 2018 RFS Rising Scholar Award.)

• September 2017 (Revised June 2019)
• Case

Dianrong: Marketplace Lending, Blockchain, and 'The New Finance' in China

By: Christopher J. Malloy, Lauren H. Cohen and Anthony K. Woo

This case examines the strategic positioning of Dianrong, one of the largest online peer-to-peer (P2P) lending platforms in China, in its attempt to become a foundational player in the expansion of the FinTech sector in Asia. Dianrong had recently announced the...  View Details

Keywords: Financing and Loans; Internet and the Web; Supply Chain; Finance; Innovation and Invention; Competition; Product Positioning; Strategy; Financial Services Industry; China

Citation

Educators

Purchase

Related

Malloy, Christopher J., Lauren H. Cohen, and Anthony K. Woo. "Dianrong: Marketplace Lending, Blockchain, and 'The New Finance' in China." Harvard Business School Case 218-043, September 2017. (Revised June 2019.)

• October 2014
• Case

CreditEase: Providing Credit and Financial Services for China's Underclass

By: Lena G. Goldberg, Paul Healy and Nancy Hua Dai

In 2013 Ning Tang, who in 2006 founded CreditEase as a broker of P2P loans to unbanked individuals and small businesses in China, confronts the challenges of rapid growth and expansion in a changing regulatory environment. CreditEase needs to develop technology to...  View Details

Keywords: P2P Lending; HNW Products And Services; Business Growth; Business Start-ups; Government Regulation; Change Management; Credit; Microcredit; Banking; Innovation And Management; Developing Countries And Economies; Corporate Entrepreneurship; Social Entrepreneurship; Law; Financing and Loans; Change; China

Citation

Educators

Purchase

Related

Goldberg, Lena G., Paul Healy, and Nancy Hua Dai. "CreditEase: Providing Credit and Financial Services for China's Underclass." Harvard Business School Case 315-027, October 2014.

• Spring 2013
• Article

The Growth of Finance

By: Robin Greenwood and David S. Scharfstein

The U.S. financial services industry grew from 4.9% of GDP in 1980 to 7.9% of GDP in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly...  View Details

Keywords: Finance; Asset Management; Research; Mortgages; Financial Services Industry

Citation

Find at Harvard

Read Now

Related

Greenwood, Robin, and David S. Scharfstein. "The Growth of Finance." Journal of Economic Perspectives 27, no. 2 (Spring 2013): 3–28.

• Article

Credit Access and Social Welfare: The Rise of Consumer Lending in the United States and France

By: Gunnar Trumbull

Research into the causes of the 2008 financial crisis has drawn attention to a link between growing income inequality in the United States and high household indebtedness. Most accounts trace the U.S. idea of credit-as-welfare to the period of wage stagnation and...  View Details

Keywords: Household Finance; Welfare State; Credit; Personal Finance; Welfare; Borrowing and Debt; France; United States

Citation

Find at Harvard

Purchase

Related

Trumbull, Gunnar. "Credit Access and Social Welfare: The Rise of Consumer Lending in the United States and France." Politics & Society 40, no. 1 (March 2012).

• April 2011
• Teaching Note

Santander Consumer Finance (TN)

By: J. Gunnar Trumbull

Teaching Note for 711015.  View Details

Keywords: Organizational Structure; Expansion; Decisions; Economic Slowdown and Stagnation; Credit; Growth and Development; Personal Finance; Management Practices and Processes; Banking Industry; Spain

Citation

Purchase

Related

Trumbull, J. Gunnar. "Santander Consumer Finance (TN)." Harvard Business School Teaching Note 711-093, April 2011.

• September 2010 (Revised December 2010)
• Case

Santander Consumer Finance

By: J. Gunnar Trumbull, Elena Corsi and Andrew Barron

A Spanish company has to decide if they should expand into the fragmented European consumer finance market and has to make important organizational strategy decisions in the midst of the world economic downturn that followed the 2007 U.S. credit crunch. Since 2002, the...  View Details

Keywords: Borrowing and Debt; Financial Markets; International Finance; Personal Finance; Consolidation; Corporate Strategy; Expansion; Financial Services Industry; European Union; Spain

Citation

Educators

Purchase

Related

Trumbull, J. Gunnar, Elena Corsi, and Andrew Barron. "Santander Consumer Finance." Harvard Business School Case 711-015, September 2010. (Revised December 2010.)

• April 2006 (Revised March 2007)
• Case

PayPal Merchant Services

By: Thomas R. Eisenmann and Lauren Barley

In early 2006, PayPal management is deciding how to respond to Google's entry into online payments. PayPal, owned by eBay, has targeted online merchants outside eBay's auction community for its next wave of expansion. Google represents a potential threat to PayPal's...  View Details

Keywords: Internet and the Web; Competition; Expansion; Service Operations; Auctions; Web Services Industry; Service Industry

Citation

Educators

Purchase

Related

Eisenmann, Thomas R., and Lauren Barley. "PayPal Merchant Services." Harvard Business School Case 806-188, April 2006. (Revised March 2007.)

• March 2005 (Revised January 2006)
• Case

Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures

By: Mihir A. Desai and Mark Veblen

How should a multinational firm manage foreign exchange exposures? Examines transactional and translational exposures and alternative responses to these exposures by analyzing two specific hedging decisions by General Motors. Describes General Motors' corporate hedging...  View Details

Keywords: Multinational Firms and Management; Currency Exchange Rate; Expansion; Credit Derivatives and Swaps; Financial Management; Investment Funds; Risk and Uncertainty; International Finance; Auto Industry

Citation

Educators

Purchase

Related

Desai, Mihir A., and Mark Veblen. "Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures." Harvard Business School Case 205-095, March 2005. (Revised January 2006.)

• January 2005 (Revised October 2005)
• Case

Private Capital and Public Policy: Standard & Poor's Sovereign Credit Ratings

By: Rawi E. Abdelal and Christopher Bruner

Describes Standard & Poor's sovereign credit ratings business. Provides background on the history of credit ratings agencies, the meaning of credit ratings, the expansion of the sovereign ratings business over recent decades, and the market for credit ratings. Also,...  View Details

Keywords: Sovereign Finance; History; Policy; Business and Government Relations; International Finance; Country; Globalized Economies and Regions; Decision Choices and Conditions; Capital Markets; Debates; Financial Services Industry; United States

Citation

Educators

Purchase

Related

Abdelal, Rawi E., and Christopher Bruner. "Private Capital and Public Policy: Standard & Poor's Sovereign Credit Ratings." Harvard Business School Case 705-026, January 2005. (Revised October 2005.)

• September 2004 (Revised May 2006)
• Case

Bohemian Crowns: Ceskoslovenska Obchodni Banka (A)

By: Rawi E. Abdelal, Vincent Dessain and Monika Stachowiak

Tells the story of the Czech transition from a centrally planned to a free market economy, describing the first economic reforms, the fixed-exchange rate regime, and the voucher privatization. Also explains why, in the middle of the 1990s, the Czech Republic...  View Details

Keywords: History; Currency Exchange Rate; Credit; Government Administration; Decisions; Economic Systems; Expansion; Mergers and Acquisitions; Developing Countries and Economies; Banks and Banking; Banking Industry; Czech Republic

Citation

Educators

Purchase

Related

Abdelal, Rawi E., Vincent Dessain, and Monika Stachowiak. "Bohemian Crowns: Ceskoslovenska Obchodni Banka (A)." Harvard Business School Case 705-007, September 2004. (Revised May 2006.)

• November 2001 (Revised September 2002)
• Case

International Management Group (IMG)

By: Bharat N. Anand and Kate Attea

In 2001, International Management Group (IMG) is the dominant company in the sports management industry. Its founder and CEO, Mark McCormack, is credited with having created the industry of sports management in the early 1960s. Over the next 40 years, IMG's expansion...  View Details

Keywords: Customer Focus and Relationships; Finance; Organizational Structure; Planning; Relationships; Conflict of Interests; Competition; Corporate Strategy; Expansion; Sports Industry

Citation

Educators

Purchase

Related

Anand, Bharat N., and Kate Attea. "International Management Group (IMG)." Harvard Business School Case 702-409, November 2001. (Revised September 2002.)