Credit rationing and the use of collateral are widely observed in debt financing. To our view there is yet no … collateral is limited. In our model we show that credit rationing and the use of collateral are always necessary for debt … resulting from the information asymmetry. Furthermore, we extend the set of possible collateral to property rights over physical …

This paper analyses the role of collateral in loan contracting when companies are financed by multiple bank lenders and … the view that collateral is a strategic instrument intended to influence the bargaining position of banks. Our result …

lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … borrower quality and the incidence or degree of collateralization. Our results indicate that the use of collateral in loan … housebanks do require more collateral from their debtors, thereby increasing the borrower's lock-in and strengthening the banks …

, they are subject to potential runs. We derive distinct liquidity, collateral, and asset liquidation constraints, which … ward off an individual run depends on whether it has sufficient liquidity, collateral, and asset liquidation capacity … possible if shocks to the valuation of collateral held by outside investors are sufficiently strong and uniform, and if the …

potential runs. We derive distinct liquidity, collateral, and asset liquidation constraints, which determine whether a run can … depends on whether it has sufficient liquidity, collateral, and asset liquidation capacity. These determinants are endogenous … productivity and size. Moreover, systemic runs are possible if shocks to the valuation of collateral held by outside investors are …

The ex ante theory of collateral states that better informed lenders, such as informal lenders, rely less on collateral …. We test this by contrasting the use of collateral between formal and informal lenders in the same market. Indeed, formal … lenders rely more often on collateral, controlling for conventional determinants of collateral. Moreover, better information …