. These banks exist in an environment of imperfect information with regard to lending, and a country where credit scarcity …

-offs and write-downs, we examine the impact of loan portfolio sector concentration on credit risk. By controlling for common … risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

We establish that a monopoly bank never uses collateral as a screening device. A pooling equilibrium always exists in … lending in the sense that some socially productive firms are denied credit due to excessively high interest rate. …