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Priberny, C. The Impact of COVID-19 on Demand and Lending Behavior in Prosocial P2P Lending. Credit and Capital Markets – Kredit und Kapital, 56(1), 5-26. https://doi.org/10.3790/ccm.56.1.5
Priberny, Christopher "The Impact of COVID-19 on Demand and Lending Behavior in Prosocial P2P Lending" Credit and Capital Markets – Kredit und Kapital 56.1, 2023, 5-26. https://doi.org/10.3790/ccm.56.1.5
Priberny, Christopher (2023): The Impact of COVID-19 on Demand and Lending Behavior in Prosocial P2P Lending, in: Credit and Capital Markets – Kredit und Kapital, vol. 56, iss. 1, 5-26, [online] https://doi.org/10.3790/ccm.56.1.5
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The Impact of COVID-19 on Demand and Lending Behavior in Prosocial P2P Lending

Priberny, Christopher

Credit and Capital Markets – Kredit und Kapital, Vol. 56 (2023), Iss. 1 : pp. 5–26

1 Citations (CrossRef)

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Article Details

Publisher Name
Duncker & Humblot GmbH
DOI
https://doi.org/10.3790/ccm.56.1.5
Language
English
Pages
22
Keywords

Author Details

Christopher Priberny, corresponding author. Deutsche Bundesbank University of Applied Sciences, 57627 Hachenburg, Germany and Department of Finance, University of Regensburg, Germany.

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Abstract

I derive two innovative metrics, capturing the demand and the excess demand for prosocial P2P loans in the US. The measures are based on a data set comprising prosocial P2P loan applications obtained from the US P2P lending platform Kiva for the period of November 2011 to December 2022. Furthermore, I analyze how both indices are influenced by the COVID-19 pandemic. Interestingly, the measures for the current pandemic development show a negative impact on demand while the COVID-19 reproduction rate shows a positive relation, indicating a pro-active behavior of borrowers. On the other side, socially motivated lenders seem to be less generous in providing interest-free loans in times of a worsening pandemic. As it turns out, the risk-free interest level positively impacts demand and excess demand for prosocial lending on Kiva even though the loans were granted without any interest.

Table of Contents

Section Title Page Action Price
Christopher Priberny: The Impact of COVID-19 on Demand and Lending Behavior in Prosocial P2P Lending 5
Abstract 5
I. Introduction 5
II. Prosocial P2P Lending and Relevant Literature 7
1. Kiva’s Field Partner Loans 8
2. Kiva US’s Direct Loans 8
3. Literature Overview 9
III. Measuring Demand and Excess Demand on Kiva 10
IV. Data and Methodology 14
1. Data 14
2. Exogenous Variables 16
3. Methodology 17
V. Results 19
1. Descriptive Analysis 19
2. Regression Analysis 21
VI. Conclusion 23
References 25

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