to renege on debt repayments. We show that credit exclusion creates soft collateral in the form of a borrower …'s reputation. Compared with individual lending, bank lending reduces search frictions, which increases the cost of credit exclusion …, boosts the value of soft collateral, and facilitates borrowing and lending. A dynamic rating system allows agents' ratings to …

. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in …

This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and … relationship lending increases the likelihood that a bank invests in a risky workout of distressed borrowers. Both findings support … the view that collateral is a strategic instrument intended to influence the bargaining position of banks. Our result …

guarantees a portion (ratio) of a loan provided by a bank to an SME. This research provides a theoretical model and an empirical … minimizing the bank's nonperforming loans to SMEs, and at the same time fulfill the government policies for supporting SMEs. Our … on macroeconomic conditions and vary it for each bank or each group of banks based on their soundness, in order to avoid …

asymmetries; these may be mitigated by collateral or relationship lending, possibilities often precluded to small business. We … affiliates with peer monitoring incentives. Hence, MGI willingness to post collateral signals firms credit-worthiness to banks …

issue using a unique euro-area credit register data, matched with supervisory bank data, and establish two main findings …-existing non-guaranteed debt. For firms borrowing from multiple banks, the substitution mainly arises from the lending behavior of … the bank extending guaranteed loans. Substitution was highest for funding granted to riskier and smaller firms in sectors …

asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus … consistent with the view that MGIs are better than banks at screening and monitoring opaque borrowers. Thus, banks benefit from … the willingness of MGIs to post collateral since it implies that firms are better screened and monitored …

small and medium enterprises in accessing bank financing. The aim of this paper is twofold. First, we describe the …

asking for collateral. Small firms, especially if they are young, have little collateral and short credit histories, and thus … better at screening and monitoring opaque borrowers than banks are. Thus, banks benefit from the willingness of MGIs to post … collateral since this implies that firms are better screened and monitored …