Rescue packages adopted to stabilize the banking system are generally divided into three categories: government purchases of distressed assets, government guaranteed debt issuance programs, and direct equity capital injections. Countries afflicted by the recent financial crisis launched general...

Auto dealers use floorplan financing to buy cars from the original equipment manufacturer (OEM) with credit typically provided by the OEM's captive credit bank. The purpose of this paper is to explicate and model captive bank lending to dealers and determine the loan-risk default probability in...