Gregory F Udell

Areas of Expertise

Banking and Bank Regulation

Academic Degrees

• PhD, Indiana University, 1983
• MBA, Indiana University, 1982
• MA, Northern Illinois University, 1973
• BA, DePauw University, 1968

Professional Experience

• U.S. Army, 1969-1972, 1st Lieutenant, Adjutant General Corps.
• National Boulevard Bank, Chicago, 1974-1977, Commercial Loan Officer
• Marina Bank (LaSalle Group), Chicago, 1978-1979, Vice President
• Stern School of Business, New York University, 1983-1998, Professor of Finance and Director William R. Berkley Center for Entrepreneurial Studies
• Kelley School of Business, Indiana University, 1998 -, Chase Chair of Banking and Finance
• Current/Past Consultant and/or Visiting Scholar to: Bank of Japan, Board of Governors of the Federal Reserve System, Federal Reserve Bank of Chicago, Federal Reserve Bank of San Francisco, International Finance Corporation, OECD, Riksbank, Peoples Bank of China, World Bank

Awards, Honors & Certificates

• Associate Editor, Journal of Money, Credit, and Banking
• Associate Editor, Journal of Banking and Finance (1994-2007)
• Associate Editor, Journal of Financial Services Research
• Board of Directors, Financial Management Association
• Associate Editor, The Journal of Entrepreneurial Finance and Business Ventures
• Editorial Board, Business Horizons
• Secretary/Treasurer, Financial Intermediation Research Society
• Indiana University 2015 Distinguished Faculty Research Lecture Award

Selected Publications

• Carbo-Valverde, Santiago, Francisco Rodriguez-Fernandez and Gregory F. Udell (2016), “Trade Credit, the Financial Crisis, and SME Access to Finance,” Journal of Money, Credit and Banking, 48(1): 113-143.

Abstract Mounting evidence indicates that firms, particularly SMEs, suffered from a significant credit crunch during this crisis. Little research exists on how SMEs coped with this problem due to a lack of data in the U.S. and elsewhere. We analyse for the first time whether trade credit provided an alternative source of external finance to SMEs during the crisis. Using firm-level Spanish data we find that credit constrained SMEs depend on trade credit, but not bank loans, and that the intensity of this dependence increased during the financial crisis. Unconstrained firms, in contrast, are dependent on bank loans not trade credit.

• Muñoz, Manuel Illueca, Lars Norden and Gregory F. Udell (2014), “Liberalization and Risk Taking: Evidence from Government-Controlled Banks,” Review of Finance, 18: 1217-1257.

Abstract We study the effects of the interplay between deregulation and governance on risk taking in the financial industry. We consider a large natural experiment in Spain where the removal of regulatory geographic constraints for savings banks led to a nationwide expansion of these banks during the past two decades. Based on a unique data set that combines information on the geographic distribution of bank lending, matched lender-borrower financial statements, and borrower defaults, we find that the governance of savings banks significantly affects the way in which they expand their lending activities. In particular, political influence at these banks is associated with higher ex ante risk taking and higher ex post loan defaults. Our study highlights the broader implications of the impact of global deregulation and consolidation and their interaction with governance issues.

• Presbitero, Andrea F., Gregory F. Udell and Alberto Zazzaro (2014), “The Home Bias and the Credit Crunch: A Regional Perspective,” Journal of Money, Credit and Banking, 46(s1): 53-85.

Abstract Using detailed data on loan applications and decisions for a large sample of manufacturing firms in Italy during the recent financial crisis, we find that the credit crunch has been harsher in provinces with a large share of branches owned by distantly managed banks. Inconsistent with a flight to quality we do not find evidence that economically weaker firms suffered more during the crisis. In contrast, we find that financially healthier firms were affected more in functionally distant credit markets than in markets populated by less distant banks, consistent with a home bias on the part of nationwide banks.

• Uchida, Hirofumi, Gregory F. Udell and Wako Watanabe (2013), “Are Trade Creditors Relationship Lenders,” Japan and the World Economy, 25-26 January, 24-38.
• Ongena, Steven, Alex Popov and Gregory F. Udell, (2013), “When the Cat’s Away the Mice Will Play: Does Regulation at Home Affect Bank Risk-taking Abroad,” Journal of Financial Economics, 108(3): 727-750.
• Uchida, Hirofumi, Gregory F. Udell and Nobuyoshi Yamori (2012), “Loan Officers and Relationship Lending to SMEs,” Journal of Financial Intermediation, Vol. 21, No. 1, January, pp. 97-122.
• Udell, Gregory F. and Alex Popov (2012), “Cross-Border Banking, Credit Access and the Financial Crisis,” Journal of International Economics, Vol. 87, No. 1, May, pp. 147-161.
• Radhakrishnan Gopalan, Gregory F. Udell and Vijay Yerramill (2011), “Why Do Firms Form New Banking Relationships?” Journal of Financial and Quantitative Analysis, Journal of Financial and Quantitative Analysis, 46(5) October, pp 1335-1365.
• Kano, Masaji, Hirofumi Uchida, Gregory F. Udell and Wako Watanabe (2011), “Information Verifiability, Bank Organization, Bank Competition and Bank-Borrower Relationships,” Journal of Banking and Finance, Vol. 35, No. 5, April, pp 935-954.
• Carbo-Valverde, Santiago, Francisco Rodriguez-Fernandez, and Gregory F. Udell (2009), “Bank Market Power and SME Financing Constraints,” Review of Finance, Vol. 13, pp. 309-340.
• Berger, Allen N. and Gregory F. Udell (2004), “The Institutional Memory Hypothesis and the Procyclicality of Bank Lending Behavior,” Journal of Financial Intermediation, Vol. 13, pp. 458-495.
• Berger, Allen N. and Gregory F. Udell (1995), “Relationship Lending and Lines of Credit in Small Firm Finance,” Journal of Business, Vol. 68, pp. 351-381.
• Udell, Gregory F. and Allen N. Berger (1994), "Did Risk-Based Capital Allocate Bank Credit and Cause a ''Credit Crunch'' in the U.S.," Journal of Money, Credit and Banking, Vol. 26, pp. 585-628.  Reprinted in Maximilian J.B. Hall (ed.) (2000), The Regulation and Supervision of Banks, Edward Elgar.
• Berger, Allen N. and Gregory F. Udell (1992), “Some Evidence on the Empirical Significance of Credit Rationing,” Journal of Political Economy, Vol. 100, pp. 1047-1077.  Reprinted in New Theories of Market Failure: A Critical Examination (2003), Chicago: The University of Chicago Press.