We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical … borrower and asking for collateral. We show that the presence of collateral is more likely when bank competition is low. We … presence of collateral on bank competition, measured by the Lerner index. Our empirical tests corroborate the theoretical …

We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical … borrower and asking for collateral. We show that presence of collateral is more likely when bank competition is low. We then … of collateral is regressed on bank competition, measured by the Lerner index. Our empirical tests corroborate the …

reduction of the loan loss and the observed-risk hypothesis may however explain the use of collateral. …This paper aims at testing empirically the three major theoretical reasons why banks resort to collateral: reduction of … the reasons vary according to the type of collateral. We use a unique dataset of bank loans granted to French distressed …

reduction of the loan loss and the observed-risk hypothesis may however explain the use of collateral. …We examine why banks resort to collateral, and whether their reasons vary according to the type of collateral. We use a … decision of the bank to secure a loan, as no type of collateral helps to solve adverse selection and moral hazard problems. The …

positive link between the presence of collateral and the risk premium, which is in accordance with the observed-risk hypothesis …This paper tackles the question of knowing whether collateral helps solve adverse selection problems in transition …. This suggests that collateral does not mitigate adverse selection problems in transition countries. …

We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical … borrower and asking for collateral. We show that presence of collateral is more likely when bank competition is low. We then … of collateral is regressed on bank competition, measured by the Lerner index. Our empirical tests corroborate the …