' decision of whether to use internal rating based models for credit risk (the IRB-approach) under the new Basel accord (Basel II …I evaluate a bank's incentives to implement a risk sensitive regulatory capital rule and to invest in improved risk … threshold levels of risk. I also evaluate the situation where exercise or non-exercise of the options to implement or invest are …

). We develop a framework to determine the effects of clearing on the credit risk of derivatives portfolio. To facilitate … our analysis, we compare the cost of credit risk of a portfolio of over-the-counter derivatives and a portfolio of similar … but cleared derivatives. We show that, under certain verifiable assumptions, the cost of credit risk of a portfolio of …

productfeatures and also in the presence of issuers’ credit risk and jump risk in the underlying. …

encourage consumption, effecting over 100 million consumers. We use a unique dataset of credit cards transaction to study the …

that banks require collateral from observably riskier borrowers (lender selection effect), while lower risk premiums arise … relation between loan risk and collateral. Specifically, we posit that different economic characteristics or types of … collateral pledges may be associated with the empirical dominance of the four different risk-collateral channels implied by …

, primarily by community banks. The survey evidence suggests that the use of credit scores in small business lending by community … banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business …The literature has documented a positive relationship between the use of credit scoring for small business loans and …

acquiring banks value profitable, high-growth, and low-risk targets. We also find that the strength of bank regulation and … regimes and stronger deposit insurance schemes lower the takeover premiums paid by acquiring banks. This result, presumably in …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit …

paper attempts to do so using a credit registry that is unique in that it allows the researcher to have access to some … private information about borrower risk that is unobserved by the lender. The data also include public information about … borrower risk, loan contract terms, and ex post performance for both secured and unsecured loans. The results suggest that the …