The information asymmetry between the borrower and the lender is a well-studied issue in the credit contracts. Various … mechanisms (credit rationing, short-term debt, relationship banking, collateralization) have been discussed in the literature to … reduce the asymmetry. This paper examines the role of credit line in reducing the information asymmetry through better risk …

-dealers when they are more profitable. These results allow for a better understanding of banks' credit risk management. …

The widespread evidence of multiple bank lending relationships in credit markets suggests that firms are interested in …

to obtain various kinds of credit certificates. As P2P markets continue to develop, it is plausible that certification … surprisingly, loans with more credit certificates experience a higher rate of delinquency and default. However, lenders remain … reduced investment inefficiency. Overall, we document a setting where credit certificates fail to serve as an accurate signal …

of lenders not observing a borrower's true credit score but only seeing an aggregate credit category. We find that … borrower's credit score. This inference is economically significant and allows lenders to lend at a 140-basis-points lower rate … for borrowers with (unobserved to lenders) better credit scores within a credit category. While lenders infer the most …

the financial health of the contracting parties and uncertainty regarding the borrowers' credit quality. The relative …