In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects …, the probability of default has no impact on the collateral's effectiveness. Moreover, a higher risk of the project caused … by a higher loss given default makes the use of collateral even less effective. -- Debt renegotiation ; Collateral ; Risk …

; Transaction Costs ; Criteria for Decision-Making under Risk and Uncertainty ; Asymmetric and Private Information ; Intertemporal …

An important theoretical literature motivates collateral as a mechanism that mitigates adverse selection, credit … incidence of collateral. We exploit exogenous variation in lender information related to the adoption of an information … technology that reduces ex ante private information, and compare collateral outcomes before and after adoption. Our results are …

We introduce and study the main properties of a class of convex risk measures that refine Expected Shortfall by … adjusted Expected Shortfalls quantify risk as the minimum amount of capital that has to be raised and injected into a financial … probability level p\in[0,1]. Through the choice of the benchmark risk profile g one can tailor the risk assessment to the specific …

requirement of rich expertise in financial risk. Compared with other black-box algorithms, the explainable CBR system allows a … predicting financial risk, which is essential for both financial companies and their customers. In addition, results show that …

The regulatory use of banks' internal models makes capital requirements more risk-sensitive but invites regulatory … arbitrage. I develop a framework to study bank regulation with strategic selection of risk models. A bank supervisor can … discourage arbitrage by auditing risk models, and implements capital ratios less risk-sensitive than in the first-best to reduce …

times. The paper analyzes how these government programs influence credit allocation, indebtedness, and risk at both the … firms. The uptake of the employment program is not associated with risk, as firms internalize the opportunity cost of … expansion of the credit program by supporting firms and enabling banks to screen firms better. Macroeconomic risk of the credit …

. We present evidence consistent with banks' IT adoption spurring entrepreneurship through a collateral channel …' ability to determine collateral values, in particular when collateral appraisal is more complex. IT also reduces the time and …

We examine the role of collateral in a dynamic model of optimal credit contracts in which a borrower values both … the role collateral as a deterrent to manipulation. Some assets, those that generate consumable services will necessarily …