The current banking crisis highlights the challenges faced in the traditional lending model, particularly in terms of screening smaller borrowers. The recent growth in online peer-to-peer lending marketplaces offers opportunities to examine different lending models that rely on screening by...

Non-performing loans (NPLs) rate is one of the main risks in commercial banks and is also a critical measure of the bank's financial performance and stability. Banks meet the growth rate of NPLs when the debtors are not able to meet their financial obligations in terms of repayment of loans....

We use fair value adoption as a quasi-natural experiment to examine the effect of hard information on credit supply through a contracting channel. After fair value adoption, usage of financial covenants depending on capital-based fair value treatments significantly declined. Capital-based...

For the emerging peer-to-peer (P2P) lending markets to survive, they need to employ credit risk management practices that ensure an investor base that is profitable in the long-term. In this paper, we propose a profit scoring decision support system that is dynamically updated and based on...