reinforce the findings of other studies that utilization of formal sources like banks is significantly small compared with …

To evaluate loan applicants, banks increasingly use credit scoring models. The objective of such models typically is to … minimize default rates or the number of incorrectly classified loans. Thereby they fail to take into account that loans are … multiperiod contracts for which reason it is important for banks not only to know if but also when a loan will default. In this …

Banks provide risky loans to firms which have superior information regarding the quality of their projects. Due to … asymmetric information the banks face the risk of adverse selection. Credit Value-at-Risk (CVaR) regulation counters the problem … of low quality, i.e. high risk, loans and therefore reduces the risk of the bank loan portfolio. However, CVaR regulation …