This paper analyses the factors that characterize the collateral loans in Chile. Such analysis is motivated by the … importance of the credit access for businesses survival and the value that has the ability to pledge collateral as a mechanism to … pledge collateral on loans in Chile. In addition, since Chile is a country with an emerging economy, the results are compared …

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 … collateral, spurring delinquency of borrowers on outstanding claims. We so explain why banks are senior lenders and quantify the …

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … private information about borrower risk that is unobserved by the lender. The data also include public information about …

Collateral is a widely used, but not well understood, debt contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … private information about borrower risk that is unobserved by the lender. The data also includes public information about …

asymmetries; these may be mitigated by collateral or relationship lending, possibilities often precluded to small business. We … affiliates with peer monitoring incentives. Hence, MGI willingness to post collateral signals firms credit-worthiness to banks …

borrower collateral versus third-party guarantees. Among first-time borrowers, the introduction of mandatory information … sharing leads to a shift from collateral to guarantees, in particular for riskier borrowers. Among repeat borrowers, both … collateral and guarantee requirements decline in proportion to the length of the lending relationship. These results suggest that …

How does asset encumbrance affect the fragility of intermediaries subject to rollover risk? We offer a model in which a …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on … guarantees induce excessive encumbrance and fragility. To mitigate such risk shifting, we study prudential regulatory tools …

be provided on the data collected to generate borrower's detailed risk profile in contrast to public credit registries …