The risk of repudiation plays a central role in the size and nature of international capital flows. In this paper the … author addresses the question of whether, in a world of international capital flows with risk of default, strategic … international debt in which only governments borrow and lend internationally and decentralized arrangements in which individuals …

Recently there have been a number of recommendations to increase the role of subordinated debt (SND) in satisfying bank … capital requirements as a preferred means to discipline the risk-taking behavior of systemically important banks. One such …

Several recent studies have recommended greater reliance on subordinated debt as a tool to discipline bank risk taking …. Some of these proposals recommend using sub-debt yield spreads as triggers for supervisory discipline under prompt … analysis of the relative accuracy of various capital ratios and sub-debt spreads in predicting bank condition, measured as …

Several recent studies have recommended greater reliance on subordinated debt as a tool to discipline bank risk taking …. Some of these proposals recommend using subordinated debt yield spreads as additional triggers for supervisory discipline … theoretical model describing how use of a second market-measure of bank risk, in addition to the supervisors’ own internalized …

of risk imposed by holders of bank liabilities; (5) a review of some of the existing sub-debt proposals emphasizing their …In recent years there has been a growing realization that there are significant problems with the current bank risk … growing realization that bank regulation must more effectively incorporate market discipline to encourage prudent risk …

Credit rationing is a common feature of most developing economies. In response to it, the governments of these … countries often operate extensive credit programs and lend, either directly or indirectly, to the private sector. We analyze the … macroeconomic consequences of a typical government credit program in a small open economy. We show that such programs increase long …

of perfect information on the financial aggregates—future information on credit growth helps improve the prediction …—that is, the growth in credit helps explain the growth in real output in a particular specification of the output model. This … finding, though, is sensitive to the choice of foreign output proxy. In sum, we conclude that while credit may have some …

The literature has documented a positive relationship between the use of credit scoring for small business loans and … small business credit availability, broadly defined. However, this literature is hampered by the fact that all of the … deficiencies in the extant literature by employing data from a new survey on the use of credit scoring in small business lending …