Hainz, Christa; Weill, Laurent; Godlewski, Christophe - Suomen Pankki - 2008
We investigate the impact of bank competition on the use of collateral in loan contracts. We develop a theoretical … borrower and asking for collateral. We show that presence of collateral is more likely when bank competition is low. We then … test this prediction empirically on a sample of bank loans from 70 countries. We estimate logit models where the presence …