Showing 1 - 10 of 16
Practices have been cited frequently as an indicator of general credit availability. Results from the Board's survey suggest …
Persistent link: https://www.econbiz.de/10004993979
Central bank or International Monetary Fund lending should be regarded as a line of credit, analogous to private line-of-credit … products. Contractual provisions in private line-of-credit arrangements are designed to control managerial moral hazard and … provide a means for profit-maximizing lenders to credibly commit to withdraw credit and induce closure when appropriate. The …
Persistent link: https://www.econbiz.de/10004993951
Short-term credit plays an essential part in the business financing process. In view of its importance in the nation …'s credit structure, the market for short-term business credit receives a great deal of attention from financial analysts. …
Persistent link: https://www.econbiz.de/10004993953
This paper presents a simple general equilibrium model of the commercial loan market in which liquidity constraints arise endogenously because of imperfect information and imperfect competition. The information and market structure generate a discriminatory interest rate schedule and loan size...
Persistent link: https://www.econbiz.de/10004993970
Linear programming is an important method for computing solutions to private information problems. The method is applicable for arbitrary specifications of the references and technology. Unfortunately, as the cardinality of underlying sets increases the programs quickly become too large to...
Persistent link: https://www.econbiz.de/10004993892
Banks were substantially deregulated during the 1980s. Interest costs rose faster than operating expenses (capital, labor) were reduced. As a result, measured technical change in banking was negative: it averaged -0.8% to -1.4% a year over 1977-88. Technical change was measured three different...
Persistent link: https://www.econbiz.de/10004993941
The paper presents the results of research conducted as part of the American Enterprise Institute's project on financial services regulation. It is a revision of a paper that later appeared in a volume providing a comprehensive review of financial regulatory policy entitled, Restructuring...
Persistent link: https://www.econbiz.de/10004994018
Models of banks operating under limited liability with deposit insurance and employee incentive problems are used to analyze how banker compensation contracts can contribute to bank risk shifting. The first model is a multi-agent, moral-hazard model, where each agent (e.g. a loan officer)...
Persistent link: https://www.econbiz.de/10010633800
We describe a stochastic economic environment in which the mix of money and trade credit used as means of payment is … endogenous. The economy has an infinite horizon, spatial separation and a credit-related transaction cost, but no capital. We … monetary policy and for time series analysis using money and trade credit. …
Persistent link: https://www.econbiz.de/10004993896
the same set of institutions, i.e., banks, because systems to evaluate credit, monitor and enforce loan agreements, and … extend credit on short notice are productive in originating loans to nonfinancial customers and in managing lending to …
Persistent link: https://www.econbiz.de/10004993902