Espinosa-Vega, Marco A.; Russell, Steven - In: Latin American journal of central banking : LAJCB 1 (2020) 1/4, pp. 1-26
by introducing loan-portfolio opacity, reducing the quality of information about portfolio risk. [3] Financial crises … responsible for the length and severity of these recessions. In the model, banks assess loan risk, originate and liquidate loans … making inefficient decisions about liquidating loans and choosing loan originators (who assess risk). Inefficient liquidation …