the financial health of the contracting parties and uncertainty regarding the borrowers' credit quality. The relative …

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit … markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of …-standard-deviation increase in the efficiency of bankruptcy is associated with an increase in the stock of corporate bonds equal to 5% of firm …

Over the past two decades, banks have increasingly focused on offering contingent credit in the form of credit lines as …' provision of liquidity insurance in the form of credit lines, their significance in managing corporate liquidity, and the … repay credit lines are put options issued by banks, which are exercised by firms in a correlated manner during periods of …

market efficiency. A randomized encouragement design on a standard credit builder loan (CBL) identifies null average effects …There is little evidence on how the large market for credit score improvement products affects consumers or credit … on whether consumers have a credit score and the score itself, with important heterogeneity: those with loans outstanding …

Standard economic theory says that unsecured, high-interest, short-term debt -- such as borrowing via credit cards and … transitory income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting … consumption. We first use detailed longitudinal information on debit and credit card transactions, account balances, and credit …

-constrained investors to take excessive risks. Ignored are unconstrained investors speculating on higher prices during credit booms. To … encouraged a bank/brokerage-credit-fueled stock-market bubble. The direct effect is a 25 cent increase in a stock's market …

A growing literature shows that credit indicators forecast aggregate real outcomes. While researchers have proposed … simple, frictionless, model explains empirical findings commonly attributed to credit cycles. Our key assumption is that … firms have heterogeneous exposures to underlying economy-wide shocks. This leads to endogenous dispersion in credit quality …

This paper develops a network model of interbank lending, in which banks decide to extend credit to their potential … literature on financial networks, we focus on how anticipation of future defaults may result in ex ante "credit freezes," whereby … banks refuse to extend credit to one another. We first characterize the terms of the interbank contracts and the patterns of …

This study examines the misallocation of credit in Japan associated with the perverse incentives of banks to provide … additional credit to the weakest firms. Firms are far more likely to receive additional credit if they are in poor financial … allocate credit to severely impaired borrowers primarily to avoid the realization of losses on their own balance sheets. This …

aggregate loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks. The high degree of …