extracting the full surplus from projects, so that she inefficiently rejects marginally profitable projects. Collateral mitigates … relatively smaller information advantage face higher collateral requirements, and that technological innovations that narrow the … information advantage of local lenders, such as small business credit scoring, lead to a greater use of collateral in lending …

competition on this choice. We find that competing banks use collateral less often than a monopolistic bank because competition …

-pected to reduce agency costs, perceived credit risk and thus the request for personal collateral. Trustworthiness is associated …’ assessment of the trustworthiness of owner/managers is negatively associated with the personal collateral demanded by banks … hypothesis. The results show that trust has a minor role in reducing the request of collateral. …

In the aftermath of the global financial crisis, the market for unsecured credit literally dried out and collateral … than using them as collateral. The aim of this paper is to develop a non-equivalence between secured credit and outright … as collateral is a best response. …

collateral? The literature shows that unobservability of the project’s returns implies that the high-risk borrower is more … inclined to pledge outside collateral than is the low-risk borrower. However, this finding does not hold when the bank can … collateral enables the low-risk entrepreneur to select himself, but high value outside collateral has no sorting potential at all …

defaulting member. We consider schemes that use a collateral pool calculated using a rolling time window. Our simulations show … that the size of the window has a very significant effect on the average level of collateral and its variability day to day …, creating an interesting trade-off. Collateral levels and variability may be important for ACSS participants because they could …