A model of imperfectly competitive banks is examined under asymmetric information about borrower quality. Greater bank … credit booms. Such equilibria are characterised by sharp increases in credit supply and deteriorations in average loan … quality, which are inefficient for banks. In the model, banks' incentives to make risky loans can vary despite unchanged …

strength and extraordinary sovereign support and provide an estimate of banks' creditworthiness. Thus, the impact of the …

surprises on credit supply, I take the changes in interest rate derivatives immediately after each MP announcement and bring … across financial intermediaries, e.g. bank capital, are relevant. Firms connected to stronger banks mitigate about one third … of the effects of contractionary MP on credit and about two thirds on employment …

A large body of literature has shown that small firms experience difficulties in accessing the credit market due to … informational asymmetries. Banks can overcome these asymmetries through relationship lending, or at least mitigate their effects by … asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus …

A growing number of studies on the US subprime market indicate that, due to asymmetric information, credit risk … transfer activities have perverse effects on banks' lending standards. We investigate a large part of the market for … information from the empirical contract theory literature (Chiappori and Salanié, 2000). Overall, our evidence suggests that banks …

Prompt Corrective Action (PCA) prescribes prompt and deterministic termination of banks with insufficient levels of …

Using credit register data for loans to Italian firms we test for the presence of asymmetric information in the …-securitized ones. Thus, despite the presence of asymmetric information, our results do not accord with the view that credit …-risk transfer leads to lax credit standards …

A large body of literature has shown that small firms experience difficulties in accessing the credit market due to … informational asymmetries. Banks can overcome these asymmetries through relationship lending, or at least mitigate their effects by … asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus …