collateralized debt is the optimal contract. The necessary and sufficient condition is that the borrower values the collateral good … more highly than does the lender; otherwise the optimal contract does not resemble debt. Limited collateral can give rise …

Information sharing and collateral are both devices that help banks reduce the cost of adverse selection. We examine … whether they are likely to be used as substitutes (information sharing reduces the need for collateral) or complements. We … show that information sharing via a credit bureaus and registers may increase, rather than decrease, the role of collateral …

collateral. We estimate the impact of the new law using auto loans as a control group. The law has caused a reduction in interest …

lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … borrower quality and the incidence or degree of collateralization. Our results indicate that the use of collateral in loan … housebanks do require more collateral from their debtors, thereby increasing the borrower's lock-in and strengthening the banks …

This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and … the view that collateral is a strategic instrument intended to influence the bargaining position of banks. Our result …