Financial frictions may represent a severe obstacle to firms' innovativeness. This paper shows the existence and quantifies the effects of financial barriers to the innovation propensity of Italian companies. Employing direct measures of financial constraints and a credit-score estimated ad hoc,...

This paper responds to the criticism of the Zubair Diminishing Balance model for Islamic home financing that Ahmad Kameel Meera published in the ISRA Journal. The response argues that most of the comments of Meera are frivolous and misplaced. It reiterates that the ZDBM is much different from...

Advisability of a systematic approach to problem loans management in bank is justified. It was determined that problem loans management system in bank should be defined as its structural and functional integrity of an object, a subject, principles and a mechanism. The interaction of these...

This paper addresses the issue of moral hazard associated with the use of short-term foreign borrowing by the financial intermediaries in Costa Rica. This situation arises from the implicit insurance that the authorities confer; given the expectation that banks have about central bank incentives...

This paper investigates whether credit associations put competitive pressure on regional banks in Japanese regional lending markets. It was found that credit associations pressure regional banks to set lower lending interest rates in regional markets. In addition, the competitive pressure from...

We design an experiment to examine behavior and welfare in a multi-level trust game representing a pass through investment in an intermediated market. In a repeated game, an investor invests via an intermediary who lends to a borrower. A pre-experiment one-shot version of the game serves as a...

Poor people often have just hand to mouth existence and have few reserves for major expenses such as illness, weddings, house repairs or education. They are unable to build their savings and are forced to borrow at exorbitant rates. This further adds to their burden and worsens their economic...