the financial health of the contracting parties and uncertainty regarding the borrowers' credit quality. The relative …

banks in providing credit to smaller borrowers about whom information is least complete and, more generally, support the …

assets, based almost entirely on a credit risk criterion. The paper provides both a theoretical and empirical framework for … credit risk. For example, our findings indicate that the RBC weights overpenalize home mortgages, which have an average … credit loss of 13 basis points, relative to commercial and consumer loans. The RBC rules also contain a significant bias …

Standard economic theory says that unsecured, high-interest, short-term debt — such as borrowing via credit cards and … income shock of unemployment. Instead, individuals smooth their credit card debt and overdrafts by adjusting consumption. We … first use detailed longitudinal information on debit and credit card transactions, account balances, and credit lines from a …

-constrained investors to take excessive risks. Ignored are unconstrained investors speculating on higher prices during credit booms. To … a bank/brokerage-credit-fueled stock-market bubble. The direct effect is a 25 cent increase in a stock's market …

currency and reduce net exports. Emerging market policy makers however believe that inflows lead to credit booms and rising … output, and the evidence appears to go their way. To reconcile theory and reality, we extend the set of assets included in …

bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …