; Transaction Costs ; Criteria for Decision-Making under Risk and Uncertainty ; Asymmetric and Private Information ; Intertemporal …

In this paper, we explore whether economic uncertainty differently affects the default risk of Islamic and conventional … uncertainty increases the default risk of conventional banks but does not affect Islamic banks’ default risk. To understand why … banks’ default risk is not significantly affected by uncertainty in all types of countries, but such a difference with …

. We present evidence consistent with banks' IT adoption spurring entrepreneurship through a collateral channel …' ability to determine collateral values, in particular when collateral appraisal is more complex. IT also reduces the time and …

We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in … which all borrowers pay the same interest rate and put zero collateral. Absence of screening leads to socially inefficient …

. We present evidence consistent with banks’ IT adoption spurring entrepreneurship through a collateral channel …’ ability to determine collateral values, in particular when collateral appraisal is more complex. IT also reduces the time and …

neglected area of moral hazard; specifically the relationship between risk aversion, an entrepreneur?s wealth and the provision … of collateral. The results highlight some interesting nuances which are not characteristic of the properties of models … be negatively related to an entrepreneur?s initial wealth. Our model shows that banks can use collateral as a means of …

are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

are better able to evaluate a project's risk than entrepreneurs. We study the bank's choice between screening and … competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

How does asset encumbrance affect the fragility of intermediaries subject to rollover risk? We offer a model in which a …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on … guarantees induce excessive encumbrance and fragility. To mitigate such risk shifting, we study prudential regulatory tools …