| . | “Quasi” R2 . | |$\ln\left(\mbox{IQR}_{b,q}\right)$| . | |$\ln\left(\sigma_{\mbox{loan}_{b,q}}\right)$| . | VW ROL . | VW defaults . | |$\ln\left(\mbox{new ind.}\right.$| . |
|---|---|---|---|---|---|---|
| . | . | . | . | . | . | |$\left.\mbox{debt}_{b,q}\right)$| . |
| . | (1) . | (2) . | (3) . | (4) . | (5) . | (6) . |
| A. Single branch within 8–10 km | ||||||
| Branch level | −0.030** | −0.136*** | −0.058* | −0.008*** | 0.011*** | 0.003 |
| (0.015) | (0.044) | (0.035) | (0.003) | (0.004) | (0.047) | |
| Observations | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 |
| Adj-|$R^{2}$| | 0.110 | 0.199 | 0.232 | 0.122 | 0.150 | 0.412 |
| B. Reserve Bank of India measure | ||||||
| Branch level | −0.018 | −0.173*** | −0.091** | −0.008 | 0.013** | −0.065 |
| (0.018) | (0.048) | (0.045) | (0.005) | (0.006) | (0.058) | |
| Observations | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 |
| |$\mbox{Adj}-R^{2}$| | 0.122 | 0.200 | 0.250 | 0.137 | 0.190 | 0.407 |
| Quarter FEs | Y | Y | Y | Y | Y | Y |
| Branch FEs | Y | Y | Y | Y | Y | Y |
| . | “Quasi” R2 . | |$\ln\left(\mbox{IQR}_{b,q}\right)$| . | |$\ln\left(\sigma_{\mbox{loan}_{b,q}}\right)$| . | VW ROL . | VW defaults . | |$\ln\left(\mbox{new ind.}\right.$| . |
|---|---|---|---|---|---|---|
| . | . | . | . | . | . | |$\left.\mbox{debt}_{b,q}\right)$| . |
| . | (1) . | (2) . | (3) . | (4) . | (5) . | (6) . |
| A. Single branch within 8–10 km | ||||||
| Branch level | −0.030** | −0.136*** | −0.058* | −0.008*** | 0.011*** | 0.003 |
| (0.015) | (0.044) | (0.035) | (0.003) | (0.004) | (0.047) | |
| Observations | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 |
| Adj-|$R^{2}$| | 0.110 | 0.199 | 0.232 | 0.122 | 0.150 | 0.412 |
| B. Reserve Bank of India measure | ||||||
| Branch level | −0.018 | −0.173*** | −0.091** | −0.008 | 0.013** | −0.065 |
| (0.018) | (0.048) | (0.045) | (0.005) | (0.006) | (0.058) | |
| Observations | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 |
| |$\mbox{Adj}-R^{2}$| | 0.122 | 0.200 | 0.250 | 0.137 | 0.190 | 0.407 |
| Quarter FEs | Y | Y | Y | Y | Y | Y |
| Branch FEs | Y | Y | Y | Y | Y | Y |
The table reports results for branches that are the only branch in an area: (1) 8- to 10-kilometer radius as provided by the Bank (panel A), (2) banking area, as defined by the Reserve Bank of India (panel B). We report the estimated effect on the three measures of contract standardization (Columns 1 to 3), value-weighted return on loans (Column 4) and default (Column 5), and total new lending to small individual borrowers (Column 6). The unit of analysis is a branch-quarter. The variable Branch Level is a number between 1 and 3, where the lowest value (level 1) and the highest value (level 3) characterize the least hierarchical branches and the most hierarchical branches, respectively. The standard errors are reported in parentheses and clustered at the branch level. * significant at 10%; ** significant at 5%; and *** significant at 1%.
| . | “Quasi” R2 . | |$\ln\left(\mbox{IQR}_{b,q}\right)$| . | |$\ln\left(\sigma_{\mbox{loan}_{b,q}}\right)$| . | VW ROL . | VW defaults . | |$\ln\left(\mbox{new ind.}\right.$| . |
|---|---|---|---|---|---|---|
| . | . | . | . | . | . | |$\left.\mbox{debt}_{b,q}\right)$| . |
| . | (1) . | (2) . | (3) . | (4) . | (5) . | (6) . |
| A. Single branch within 8–10 km | ||||||
| Branch level | −0.030** | −0.136*** | −0.058* | −0.008*** | 0.011*** | 0.003 |
| (0.015) | (0.044) | (0.035) | (0.003) | (0.004) | (0.047) | |
| Observations | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 |
| Adj-|$R^{2}$| | 0.110 | 0.199 | 0.232 | 0.122 | 0.150 | 0.412 |
| B. Reserve Bank of India measure | ||||||
| Branch level | −0.018 | −0.173*** | −0.091** | −0.008 | 0.013** | −0.065 |
| (0.018) | (0.048) | (0.045) | (0.005) | (0.006) | (0.058) | |
| Observations | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 |
| |$\mbox{Adj}-R^{2}$| | 0.122 | 0.200 | 0.250 | 0.137 | 0.190 | 0.407 |
| Quarter FEs | Y | Y | Y | Y | Y | Y |
| Branch FEs | Y | Y | Y | Y | Y | Y |
| . | “Quasi” R2 . | |$\ln\left(\mbox{IQR}_{b,q}\right)$| . | |$\ln\left(\sigma_{\mbox{loan}_{b,q}}\right)$| . | VW ROL . | VW defaults . | |$\ln\left(\mbox{new ind.}\right.$| . |
|---|---|---|---|---|---|---|
| . | . | . | . | . | . | |$\left.\mbox{debt}_{b,q}\right)$| . |
| . | (1) . | (2) . | (3) . | (4) . | (5) . | (6) . |
| A. Single branch within 8–10 km | ||||||
| Branch level | −0.030** | −0.136*** | −0.058* | −0.008*** | 0.011*** | 0.003 |
| (0.015) | (0.044) | (0.035) | (0.003) | (0.004) | (0.047) | |
| Observations | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 | 24,111 |
| Adj-|$R^{2}$| | 0.110 | 0.199 | 0.232 | 0.122 | 0.150 | 0.412 |
| B. Reserve Bank of India measure | ||||||
| Branch level | −0.018 | −0.173*** | −0.091** | −0.008 | 0.013** | −0.065 |
| (0.018) | (0.048) | (0.045) | (0.005) | (0.006) | (0.058) | |
| Observations | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 | 24,923 |
| |$\mbox{Adj}-R^{2}$| | 0.122 | 0.200 | 0.250 | 0.137 | 0.190 | 0.407 |
| Quarter FEs | Y | Y | Y | Y | Y | Y |
| Branch FEs | Y | Y | Y | Y | Y | Y |
The table reports results for branches that are the only branch in an area: (1) 8- to 10-kilometer radius as provided by the Bank (panel A), (2) banking area, as defined by the Reserve Bank of India (panel B). We report the estimated effect on the three measures of contract standardization (Columns 1 to 3), value-weighted return on loans (Column 4) and default (Column 5), and total new lending to small individual borrowers (Column 6). The unit of analysis is a branch-quarter. The variable Branch Level is a number between 1 and 3, where the lowest value (level 1) and the highest value (level 3) characterize the least hierarchical branches and the most hierarchical branches, respectively. The standard errors are reported in parentheses and clustered at the branch level. * significant at 10%; ** significant at 5%; and *** significant at 1%.
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