We document that, since 2011, mortgage lenders reduced credit to middle-class households by 15% and increased credit to wealthy households by 21%. Credit to low-income households was unaffected. Results hold at the individual-loan level and zip-code level, and at the intensive margin and...

China's Peer-to-Peer (P2P) lending market now comprises a significant share of global markets in terms of transaction amounts, followed by the US and the UK. This huge market share was strongly driven by huge demand from the underserved borrowers and lenders in the Chinese financial market as...

Chinese banks have sought ways to rapidly expand lending in light of strict regulatory mandates to reduce official lending and maintain high capital adequacy ratios. Through arbitraging capital risk weights, total lending has expanded while capital adequacy ratios have remained unchanged....

We investigate the U.S. experience with macroprudential policies by studying the interagency guidance on leveraged lending. We find that the guidance primarily impacted large, closely supervised banks, but only after supervisors issued important clarifications. It also triggered a migration of...

This paper compares the predictive power of credit scoring models based on machine learning techniques with that of traditional loss and default models. Using proprietary transaction-level data from a leading fintech company in China for the period between May and September 2017, we test the...

We study non-performing loan (NPL) resolution using proprietary data on NPL transactions in China. We find these transactions – driven by tighter financial regulation – are consistent with banks concealing non-performing assets from regulators as (i) transaction prices do not compensate for...