The global financial crisis dramatically transformed the market conditions in the banking industry. We construct a theoretical model of spatial competition that considers the differential information between lenders and loan applicants to explore how changes in the market structure affect the...

In this paper, we construct a spatial model of banking competition that considers the differential information among banks and potential borrowers to investigate how the market structure affects the lending behavior of banks and their incentives to invest in screening technology. Consistent with...

We explore an inconsistency in the Basel Committee's Internal Ratings Based (IRB) rules: the IRB rules on corporate loans were calibrated to loan-level data, while the IRB rules on small business loans were calibrated with little, if any, information on small business loans. We argue that the...

We explore an inconsistency in the Basel Committee's Internal Ratings Based (IRB) rules: the IRB rules on corporate loans were calibrated to loan-level data, while the IRB rules on small business loans were calibrated with little, if any, information on small business loans. We argue that the...