. We examine the effects of creditor rights on the sensitivity of bank lending terms to aggregate relative to firm …-specific information. We formulate two competing hypotheses. On the one hand, weaker creditor rights can amplify the bank's screening and … reduce the ability of borrowers with strong fundamentals to raise bank debt, lead to more correlated bank lending decisions …

driving asset prices to 'overshoot' equilibrium when an asset bubble bursts--threatening widespread insolvency and what …