There is little evidence on how the large market for credit score improvement products affects consumers or credit … market efficiency. A randomized encouragement design on a standard credit builder loan (CBL) identifies null average effects … 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 … bank overdraft facilities -- helps individuals smooth consumption in the event of transitory income shocks. This paper … transitory income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting …

encouraged a bank/brokerage-credit-fueled stock-market bubble. The direct effect is a 25 cent increase in a stock's market …Research on leverage and asset-price fluctuations focuses on the direct effect of lax bank lending enabling financially …-constrained investors to take excessive risks. Ignored are unconstrained investors speculating on higher prices during credit booms. To …

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 …

Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank …

Now in prospect is a major revision of international bank capital regulations that would embody recent advances in … credit risk measurement and management. Previous regulations have been simpler in structure, with a primary goal of getting … presents evidence that explicit treatment in new regulations of several important dimensions of credit risk is necessary. If …

This paper analyzes the determinants of spreads on syndicated bank lending to emerging markets, treating the loan … banks in providing credit to smaller borrowers about whom information is least complete and, more generally, support the … interpretation of bank finance as dominating that segment of international financial markets characterized by the most pronounced …