Fintechs are believed to help expand credit access to underserved consumers without taking on additional risk. We … risk and lending inefficiency, respectively. As of 2013 and 2016, we find that the higher NPL ratios at the largest banks … are driven by inherent credit risk, rather than lending inefficiency. Smaller banks are less efficient. In addition, as of …

This paper analyzes the impact of US firms’ equity risk on bank lending standards and on the macroeconomy for two … groups: small and medium-large firms. The results indicate that a higher level of firm risk leads to a higher percentage of …-large firms. The finding provides support for the Risk Management Hypothesis, under which banks decrease lending to risky …

show that transition to risk-free reference rates may exacerbate this friction. The adverse impact on credit supply is …

LIBOR. We show that transition to risk-free reference rates may exacerbate this friction. The adverse impact on credit …

show that transition to risk-free reference rates may exacerbate this friction. The adverse impact on credit supply is …

Using unique nationwide property-level mortgage, flood risk, and flood map data, we analyze whether lenders respond to … flood risk that is not captured in FEMA flood maps. We find that lenders are less willing to originate mortgages and charge … higher rates for lower LTV loans that face "un-mapped" flood risk. This effect is weaker for high income applicants, as well …

This paper tests the validity of a single-factor (market) model to price consumer lending risk. It classifies US … revolving credit as default risk, show that the intercepts are indistinguishable from zero in 22 portfolios, and the average … default rate of a portfolio increases with its beta. The additional risk factors based on unemployment and income growth …

to be better at managing credit risks, thanks to more sophisticated quantitative risk techniques, lower susceptibility to …