encourage banks to attract more deposit as this has a significant impact on the credit ability of the banks. A periodic review …

This study examines the relation of bank loan terms like interest rates, collateral, and lines of credit to borrower … risk defined by the banks’ internal credit rating. The analysis is not restricted to a static view. It also incorporates … weighted average of credit rating before and after a rating transition serves to compensate for low earlier profits caused by …

information asymmetry. We also find that bank loan ratings are less responsive to changes in underlying credit conditions for …' credit ratings. Our study cautions against this practice …