credit by their bank. The reduction in collateral value also precedes a decrease in bank monitoring intensity and frequency … to monitor. -- Collateral ; credit rationing ; differences-in-differences ; floating lien ; loan contracts ; monitoring … type of collateral that is comparable to the floating lien. We explore this natural experiment to identify how collateral …

We show that collateral plays an important role in the design of debt contracts, the provision of credit, and the … incentives of lenders to monitor borrowers. Using a unique dataset from a large bank containing timely assessments of collateral … values, in conjunction with a legal reform that exogenously reduced those values, we find that the bank responded to this …

In this paper we use credit rating data from two large Swedish banks to elicit evidence on banks' loan monitoring … monitoring, as theory suggests. However, our tests also reveal that publicly available information from a credit bureau is not …

In this paper, the authors use credit rating data from two Swedish banks to elicit evidence on banks' loan monitoring … ability. They test the banks' ability to forecast credit bureau ratings, and vice versa, and show that bank ratings are able …