This paper explores how a job guarantee welfare program interacts with credit markets. We analyze the impact of a country-wide job guarantee program, launched in India in 2006. Exploiting the staggered implementation of the program we estimate the treatment effect of the program on household and...

By leveraging machine-learning algorithms and using nontraditional digital data derived primarily from borrowers’ mobile devices, digital lenders have vastly expanded access to credit in developing economies for millions of individuals without a prior credit history. At the same time,...

Multiple extensions of the federal student loan forbearance program since March 2020resulted in a temporary payment pause that lasted more than 3 years. We examine theimpact of long-term forbearance on the evolution of borrowing by distressed individuals.We observe substantial increases in...

On December 16th of 2015, the Fed initiated “liftoff,” a critical step in the monetary normalization process. We use a unique panel dataset of 640,000 loan-hour observations to measure the impact of liftoff on interest rates, demand, and supply in the online primary market for...

This paper studies a type of mortgage applications in which household applicants reject offers from lenders. We find that less risky applicants with lower loan size to income ratios are more likely to reject loan offers from lenders. Local lenders that operate in a market where they extend the...

This study examines racial and ethnic disparities in mortgage-lending outcomes across different lender types-large banks, fintech lenders, non-bank lenders, small banks, and credit unions-using Home Mortgage Disclosure Act (HMDA) data from 2018 to 2023. By analyzing approval rates, rate spreads,...

The European Central Bank's interest rate hikes since July 2022 have been passed on to customers by banks on credit markets to a much greater extent than on deposit markets. As a result, banks' net interest margins have risen extraordinarily sharply. An analysis of the interest rate pass-through...

Stress testing has become an important topic in banking practice since the development of the risk management and the enforcement of international supervisory requirements. While, in the context of credit risk, the regulatory perspective is mainly focused on stressing risk parameters, we propose...

The emergence of FinTech lending companies can be attributed to the convergence of factors such as the widespread use of the internet, advancements in machine learning, and a decline in trust towards traditional banking systems following the financial crisis of 2006-08. These companies have...

In recent years new methods and models have been developed to quantify credit risk on a portfolio basis. CreditMetrics (tm), CreditRisk+, CreditPortfolio (tm) are among the best known and many others are similar to them. At first glance they are quite different in their approaches and...