lending, borrower quality and collateral as a key variable in loan contract design. We used a unique data set based on the … decision-making and contract design. In particular, bank internal borrower ratings serve to evaluate borrower quality, and the … contract design is mainly driven by aspects of relationship lending and renegotiations. We found that relationship lenders or …

We propose a new mortgage contract that endogenously captures the risk of house price declines to minimize default risk … resulting from changes in the underlying asset value while still retaining contract rates near the cost of a standard fixed …

directors. These findings are consistent with economic regulation theory. We contribute to prior literature on corporate …