household borrowers during a huge cycle and its aftermath yields evidence of time-varying credit policy. We find that the focus …In this paper we test the hypothesis that credit policies are pro-cyclical. Our approach is based on a stochastic … of credit policy changed from collateral to current income during the cycle. Instead of a credit crunch, ie, an overall …

extent to which a household’s risk of being financially distressed depends on net income after tax and loan servicing costs … scenarios. The simulations indicate that household credit risks to banks are relatively well contained. …This discussion paper presents a microsimulation model of household distress. We use logit analysis to estimate the …

This paper tests for the presence of a credit channel (particularly a bank-lending sub-channel) for monetary policy in … with the existence of a broad credit channel, whereas the bank-lending channel seems to be operational only under certain … suggests the existence of a clear relationship between the presence of a credit (bank lending) channel, the efficiency level of …

concerning the banks. Separation obtains in market segments where the ‘high risk’ borrowers receive credit from their preferred …We study the adverse selection problem in imperfectly competitive credit markets and illustrate the circumstances where … bank. The ‘low risk’ borrowers choose the ex-ante less-preferred bank that offers loan contracts with lower interest rates …

’ rational decisions based on their credit risk models. We use our qualitative information on firms that were denied credit to … data on self-declared credit rationing and financing constraints. Our qualitative information shows that (self …-declared) credit rationing is (weakly) related to both traditional a priori factors – such as firm size, age and location – and lenders …

We consider the joint effect of competition and deposit insurance on risk taking by banks when the riskiness of banks … is unobservable to depositors. It turns out that the magnitude of risk taking depends on the type of bank competition. If … the bank is a monopoly or banks compete only in the loan market, deposit insurance has no effect on risk taking. In that …