Sengupta, Rajdeep (contributor) - 2006
(informed lender) that can
distinguish between these borrower types.
In addition, banks may require the borrower to secure loans … to secure loans with collateral. This is consistent with the �ndings that
collateral requirements fall over the duration … the entrant
captures the low-risks, it requires the low-risks to secure loans with collateral CEL = I. But, in
the event …