We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in … lending in the sense that some socially productive firms are denied credit due to excessively high interest rate. …

Information asymmetries are known in theory to lead to inefficiently low credit provision, yet empirical estimates of … to estimate welfare losses arising from asymmetric information in the market for online consumer credit. Building on … price distortions, we find only small overall welfare losses, particularly for high-credit-score borrowers …

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 … empirical results on the relationship between bank competition and financial stability. The model can be used to define a …

This article investigates the short-term and long-term effects of bank market power on the availability of credit for … companies, and on firm investment. Our results suggest that an increase in bank market power reduces firms' credit availability …

Corporate credit ratings have tightened gradually but substantially over two decades. We ex- amine whether syndicated … borrowers, loans with fewer lenders and a greater lead bank share that resemble single lender loans, for borrower names with CDS …

This paper analyses empirically the effect of judicial efficiency on bank credit contractual terms for the universe of … proceedings across different jurisdictions, the paper uses a spatial regression discontinuity design that compares credit … conditions applied to firms located in municipalities on different sides of jurisdiction borders, controlling for bank …

We study the effects on credit allocation and bank stability of introducing a leverage ratio requirement (LRR) on top … current 3% LRR might even reduce bank stability, counter to regulatory intentions. This is because the allocational effect … caused by the LRR, which makes bank loan portfolios more alike, may turn beneficial risk spreading into harmful risk …

the results depend on factors such as the severity of a credit crisis, the strength of the firm-bank relationship and the …In deciding whether to roll over a loan, a relationship bank that has imperfect private information about its borrowers … relationship bank if the firm is unable to find alternative lenders. This paper explores the differential effects of this trade …