Behn, Markus; Haselmann, Rainer; Vig, Vikrant - 2016
) interest rates are higher for loans originated under the model-based approach, suggesting that banks were aware of the higher … institutions have lower capital charges and at the same time experience higher loan losses. Further, we document that large banks … expense of smaller banks that did not introduce the model-based approach. Overall, our results highlight that if the …