default rates, renegotiation, or loan rates individually, we study them together as equilibrium outcomes of the strategic … interaction between lenders and borrowers. We present a simple model of default and renegotiation where the degree of limited … default rates and renegotiation rates. Regarding loan pricing, while the model predicts higher interest rates for limited …

relationship with their savings bank prior to applying for a loan, default significantly less than customers with no prior … have inherent private information and are valuable in screening, in monitoring, and in reducing consumers’ incentives to … default. …

’s restrictions. Securities underwritten by commercial banks’ subsidiaries have a higher probability of default than those … reject that the repeal of the Glass-Steagall led to looser credit screening by broad (universal) banking companies trying to … gain market share and/or to the lower initial ability of these banks to correctly evaluate default risk. …