default (PD) and loss given default (LGD) of loans are assumed to be uncorrelated. Yet, evidence points to correlations … findings, based on simulated data that reproduce a bank's mean PD and LGD values. The findings do show that the Pareto …

small business loan officer compensation from a major commercial bank, we test the model’s predictions that incentive … compensation increases loan origination, but may induce the loan officers to book more risky loans. We find that the incentive … package amounts to a 47% increase in loan approval rate, and a 24% increase in default rate. Overall, we find that the bank …

credit lines, while those with higher overdraft fees have larger ones. Firms with greater profit growth in the past have … larger credit lines, while those with more internal funds or higher volatility in profit growth have smaller credit lines …

liquidate collateral affect non-mortgage credit provision in the context of personal loan application. The housing policy … increases the probability of loans being granted by 6.5%. The effect is robust to correcting for bias of staggered difference …-in-differences estimation and is not driven by changes in local credit demand. Improved collateral liquidity is the key channel driving the …