the bank uses in lending to business firms, namely loan maturity, collateral and loan interest rate. Based upon the …-directional relationships between collateral and loan maturity, loan rate and loan maturity, and a uni-directional relationship between loan … rate and collateral. The conflicting signs within the collateral–loan maturity relationship and the loan interest rate …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects … high probability of default, that makes collateral more effective. Instead it turns out that, given the expected return …, the probability of default has no impact on the collateral's effectiveness. Moreover, a higher risk of the project caused …

In this paper we empirically test the recent lender-based theory for the use of collateral in bank lending. Based on a … borrowers and the lending branch of the bank to capture its information advantage and the magnitude of collateral … higher collateral requirements and lower interest rates. Moreover, competitive pressure from transaction lenders does not …

A standard repurchase agreement between two counterparties is considered to examine the endogenous choice of collateral … assets, the feasibility of secured lending, and welfare implications of the central bank’s collateral framework. As an …

's closely tied to economic growth; when used as collateral by banks, rising real estate prices may decrease both expected and …

-mentioned key services, especially when programmes are larger and/or are retained by the issuer for use as collateral with the … for networks based on the use of securities as Eurosystem collateral. These findings help demonstrate the importance of …