This paper examines the disparity in default risk between vulnerable and non-vulnerable populations in consumer lending … the probability of default. We find that vulnerable individuals have a higher risk than non-vulnerable individuals …. Specifically, interest rates explain at least 30 percent of the risk gap. We also find that the default probabilities faced by …

if borrowing from FinTech lenders increases default risk. Alternatively, banks can provide more credit if such borrowing …

after the financial crisis. We also nd that consumers with a bankruptcy history, a conspicuous signal of higher default risk …

find that borrowers with a high probability of default are more responsive to maturity than interest rate changes. I also … argue that risk-based pricing may lead to an increase in loan maturity and loan default, rather than alleviating the adverse … selection present on the lending market. Empirical evidence suggests that loan performance is time-dependent and default depends …

effect of loan size on default using sharp discontinuities in loan eligibility rules. This allows us to estimate the … magnitude of selection from the cross-sectional correlation between loan size and default. We find evidence of advantageous … of default by 3.7 to 4.2 percentage points, a 20 to 23 percent decrease from the mean default rate. The incentive effect …